Home - KRA...informal and micro enterprise sector Informal taxpayers/SBPs2 No. 11,129 655,700...

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ABBREVIATIONS

ADR Alternative Dispute Resolution

AEO Authorised Economic Operator

ATP Annual Training Plan

BEA Business Enterprise Architecture

BPM Business ProcessManagement

BPS Budget Policy Statement

C&BC Customs and Border Control

CIT Corporate Income Tax

COVID-19 Corona Virus Disease 2019

CRM Customer Relationship Management

DTD Domestic Taxes Department

DWBI Data Warehouse and Business Intelligence

EMCA Enviornment Management and Coordination Act

GDP Gross Domestic Product

HELB Higher Education Loans Board

ICD Inland Container Depot

iCMS Integrated Customs Management System

ICT Information Communication aand Technology

IDF Import Declaration Form

IGS Intelligence Gathering System

IMF International Monetary Fund

IMS Intergrated Management System

IPPD Integrated Payroll and Personnel Database

IRO Independent Review of Objections

ITA Income Tax Act

KNBS Kenya National Bureau of Statistics

KPLC Kenya Power and Lighting Company

KRA Kenya Revenue Authority

LTO Large Taxpayers’ Office

MDA Ministry Departments and Agencies

MTO Medium Taxpayers’ Office

MTP III Third Medium Term Plan (MTP2018-2022)

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NDE New Digital Economy

NT National Treasury

ODPP Office of Director of Public Prosecution

OSBP One Stop Border Post

OSH Occupational Safety andHealth

PAP Pre-Arrival Processing

PAYE Pay As YouEarn

PGA Partner Government Agencies

PVoC Pre-Verification Order of Conformity

QMS Quality Management System

RBM Results Based Management

RCoE Requirement Centre of Excellence

RECTS Regional Electronic Cargo Tracking System

RTMS Real-Time Monitoring System

SBP Single Business Permit

SDG Sustainable Development Goal

TIMS Tax Invoice Management Sytstem

TLAA Tax Laws Amendment Act

ToT Turn-Over Tax

TSO Tax Services Office

VAT Value AddedTax

Vision 2030 Kenya’s Vision 2030

WHT Withholding Tax

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The following is the highlights of performance by perspective:

Table 1.1 FY 2019/2020 Performance Highlights

i) Revenue Perspective:

Kshs. 1,606,865 Million was collected in 2019/20 a

96.6% performance against the annual target. The

registered revenue performance was supported by:

a) Recruitment of an additional 720,223

taxpayers into the tax net leading to a

cumulative 5.77 million active taxpayers;

b) Integration of 18 internal and external systems

with iTax;

c) Effective tax dispute resolution, 54% of

disputes resolved through ADR;

d) Reduction in ratio of collectible debt to total

revenue collection at 7.2%; and

e) Utilization of data and intelligence.

ii) People Perspective:

KRA undertook initiatives aimed at ensuring staff are

appropriately skilled, sufficiently facilitated and properly

oriented to serve in 2019/20. These were aimed at having

a competent, performance driven, customer focussed and

motivated staff.

a) A total of 910 additional members of staff were

recruited and 3,969 trained in various technical

and professional areas as well as leadership

training.

b) Knowledge sharing culture increased to 45%.

c) Various work environment improvement measures

were implemented especially in the border stations,

and most offices standardized.

iii) Customer Perspective:

To achieve a leap in customer service, customer

pain areas addressed including:

a) Reduction in VAT refunds timelines from

133 to 112 days;

b) Implementation of port charter commitments

where most services under iCMS are instant,

10 Scanners integrated, 2 OSBPs

operationalised, and 70% of cargo under

RECTS;

c) Implementation of identified initiatives to

reduce illicit trade, and initiatives to raise the

rank in paying taxes and trading across

borders; and

d) 44 customer engagements, 34 Digital Tax

Education programmes and 23 awareness

forums on tax matters were undertaken.

iv) Business Process Perspective:

The implementation of KRA’s 3rd Information

Communication Technology (ICT) strategy led to

automation of key business processes to offer integrated,

simple, cost-effective and reliable services. Some of the

business systems under automation include iSupport,

TIMS, DWBI, CRM and iCMS. Key achievements

include:

a) Automation level increased to95.7%.

b) Filing rate increased from a baseline of 53% to

62.5%.

c) Payment rate increased from a baseline of 44% to

91.5%.

d) Acquired taxpayer data from HELB,

Communication Authority, insurance brokers and

KPLC, and National Construction Authority.

e) 850,320 PINs in IPPD data validated for MDAs &

County Governments for PAYE returns, and

17,201 company registration numbers validated

using BRS data.

f) The Authority continued its pursuit towards ISO

certification, maintenance and business continuity:

ISO 9001:2015 recertification gap analysis and

stage one audit conducted. Stage 2 halted due to

COVID-19.

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1.3 Initiatives completed in the last two financial years

By the end of the second year of implementing the 7th Corporate Plan, the following 17 initiatives had been completed:

Table 1.2 Initiatives completed in the last two financial years

i)

a) Strengthening and restructuring the ADR

function

b) Review of the ADR framework

c) Implement a corporate debt management

structure

d) Use of data analytics to facilitate debt

collection

People perspective

a) Complete the process of implementing the

departmental structures

b) Change management Policy and guidelines

implementation

c) Develop & implement Employee-Self Service

i) Customer perspective

a) Implement Manifest Monitoring

System in applicable stations-

completed in 2019/20

b) Review and consider implementation

of credit utilization across tax heads in

iTax

c) Restructuring export refund process so

that low risk claims are automatically

paid

d) Enhance capacity in CTAM division

e) Provide guidelines and safeguards for

early identification and sanction of

non-compliant taxpayers.

f) Provide clarity on tax positions as early

as possible to compliant taxpayers

g) Use proportionality inenforcement

iv) Business perspective

a) Operationalize the Corporate Data Office

b) Identify prioritized services and establish

business continuity requirements

c) Organization Structure alignment

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ANNUAL WORK PLANStrategic Initiative Performance Indicator Unit of Measure Baseline FY

2017/18Total Target FY 2020-21

PERSPECTIVE: REVENUE

STRATEGIC OUTCOME:

ENHANCED REVENUE

THROUGH IMPROVED

COMPLIANCE

Total Revenue collected1 Kshs.(Mn) 1,345,500 1,721,639

On-time payment % 44 95

4.2.1.1: Tax base expansion Active Tax payers No. (Mn) 3.94 6.5

i) Recruit through the implementation of the casheconomy strategy to tackle the informal and micro enterprisesector

Informal taxpayers/SBPs2 No. 11,129 655,700

Turnover Tax Collected Kshs.(Mn) N/A 112

ii) Recruit through the

implementation of a strategy to

improve compliance in the

professional sector

Professionals recruited No. 0 6,300

iii) Identification of registered companies that are active butnon-compliant

Registered companies No. 78,000 100,000

iv) Recruit through the

implementation an e-commerce and m-commerce strategy

Individuals trading online

(Vendors)

No. 0 4,930

v) Recruit through the

implementation of a Real Estate

Strategy

Landlords recruited No. 58,934 33,000

vi) Integrate with other systems (ICMS & ISUPPORT)

Systems integrated No. 6 6

4.2.1.2: Data Driven Decision making

i) Strengthen research and data analytics function

a) Institutionalize collaborative

research and strengthen

participation in interagency

taskforces

Collaborative Research Status N/A Establish and

Operationalize

Collaborative

Research

Mechanism

ii) Data driven VAT Compliance Strategy

VAT Gap No 45 35

Implementation status Status N/A Status report

iii) Implement compliance management model

Risk area reports No. 0 12

HNWI recruited No. 0 20

iv) Develop and implement data and information sharing mechanismunder EIAs

Process 100% of incoming request received within settimelines

% 4 100

4.2.1.3: Robust intelligence collection and investigation

Quality profiles forwarded to Departments

No. 143 300

i) Implementation of anonymous

web-based corruption reporting system (WBAR System)

Implementation level Status N/A 100%

Implementation of WBAR System

ii) Set up digital forensic laboratory Implementation level Status N/A 100%

Implementation of

Digital Forensics

Laboratory

iii) Set up a security command centre

Implementation level Status N/A 100%

Implementation of Security operation

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centre

iv) Enhance intelligence driven investigation

Cases investigated No. N/A 120

v) Enhance laboratory testing services

Lab reports within turn-around time

% 63 70

vi) Implement a Case Management System

Implementation Status N/A Automation of Case

Management

vii) Improve collaborative

arrangements with other agencies

Collaborating agencies No. 2 2

4.2.1.4: More effective dispute resolution management

Disputes resolved in ADR out of total disputes

% 38 66

i) Independent review of Taxpayer Objections by IRO Unit

Average time taken Days N/A 60

ii) Regular stakeholder engagements for ADR

Engagements on ADR No. 3 36

iii) Adhere to ADR regulations anchored on Section 112 of theTax Procedures Act 2015

Level of adherence % - 100

PERSPECTIVE: PEOPLE

STRATEGIC OUTCOME: PUBLIC CONFIDENCE IN THE INTEGRITY, PROFESSIONAL COMPETENCE AND SERVICE ORIENTATION OF OUR STAFF

Employee satisfaction4 % 67 80

Integrity Program Corruption perception index % 32 29

i) Creation of Awareness for the Stakeholders

Individuals No. 10,633 20,000

ii) Efficient Inter-agency Collaboration

Agency collaborations No. N/A 6

iii) Train Auditors on Corruption related audits

KRA Auditors Trained No. 31 30

iv) System reviews and automation Systems reviewed No. 0 3

Systems automated No. 0 15

v) Identify and review guidelines on National Values and Ethics:

Adherence report (1)6

Status reports (4)No. - 1

4.2.2.1: Staff Expansion Program

i) Recruit an additional staff Staff recruited No. N/A 1,241

4.2.2.2: Enhance staff management and development

a) Revamp our training and

skills enhancement

programme

Training satisfaction7 % 60 80

Staff trained % 49 30

b) Enhance our Leadership

development & succession

management

Leadership score8 % 61 80

i) Develop a pool of successors for all critical roles

Critical roles identified inall the departments

No. 11

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Departments where Successors have been identified

No. N/A Identify Successors within the Authority

C. Enhance staff performancemanagement

Implementation StatusN/A Conduct Quarterly

PC Validations

i) Implement a staff motivation programme Implementation Status

N/A Implementation status

d Institutionalise Knowledge management

Knowledge sharing culture score9

% 23 55

e) Institutionalise Corporate Innovation Management

Innovation score10 % 58 64

4.2.2.3: Corporate culture change management

Employee Engagement (Sikika survey)

% 67.4 80

i) Undertake internal surveys Surveys Reports No. 1 1

ii) Implement Project (ePMO/Projects/ChangeManagement Portal)

Implementation level % N/A 100

iii) Track relevant metric and measure impact of Change

Managers/Immediate

Supervisor Overall Ability to Manage Change

% N/A 66

4.2.2.4: Implement a work

environment improvement

program

WE satisfaction index % 66 75

i) Standardization of work environment

Offices standardized No. 4 8 11

ii) Develop institutionalcurriculum

on Occupational Safety and Health (OSH)

OSH Curriculum developed Status N/A Develop OSH Curriculum

iii) Train staff on occupational safety and health (OSH)

Staff trained on OSH No N/A 75

PERSPECTIVE: CUSTOMER

STRATEGIC OBJECTIVE: ACHIEVE A QUANTUM LEAP IN CUSTOMER SERVICE

STRATEGIC OUTCOME:

IMPROVED BUSINESS

CLIMATE WITH RESPECT TO

TAXATION AND TRADING

ACROSS BORDERS

Taxpayer satisfaction rate % 72 8012

4.2.3.1: Customer Service Improvement framework

Customer perception of

KRA staff adherence to core values

% 67 9013

SLA implementation:

Processing of TCC and refunds

% N/A 100

TSOs where Service Charter Awareness sessionsconducted

No. 49 37

ii. Customer IntimacyDesign and implement a Customer Engagement Framework and tax awareness strategy

Number of Engagement Models a) Customer Visits No. N/A 70

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operationalised: b) Focus Groups No. N/A 4

Media Education through: a) Radio interviews: No. N/A 52

b) TV interviews No. N/A 52

c) Opinion pieces No. N/A 52

Digital Tax Ed Content/prog: Brochures No. N/A 24

Roundtables No. N/A 10

Schools reached No 54

ii) Operational Excellence

Develop and drive a Service Excellence Program

Frontline Customer Satisfaction Score

% N/A 80

Customer Effort Score % N/A 49

First Contact Resolution Score

% N/A 75

Adopt a multi-channel led but cost optimal approach to customer service delivery through:

CRM & CCMS license expansion to the frontline

Locations with CRM & CCMS license

No 7

4.2.3.2: Improve Border Management

i) Reduction of illicit trade initiatives

Implement Initiatives for combating illicit trade:

% N/A 100

ii) Operationalize National Inter-agency framework

Implementation Status Reports N/A 100%implementation of planned activities

iii) Operationalize 3 OSBPs OSBPs operationalised No. 1 1

iv) Introduce Non-Intrusive verification tools

Scanners No. 10 2

v) Integrate international and regional customs systems

Officers with access (CEN, Interpol, NCEN, RTMS)

No. 5014

vi) Implement Real-Time Monitoring System (RTMS)

Implement RTMS in 22 stations

No. of stations linked 2

vii) Operationalize three (3) Joint Operation Centres

Joint operations No. 0 3

viii) Establish strategic inland roadblocks and patrols

Roadblocks established No. N/A 3

ix) Acquire and operationalize

mobile command units and body worn cameras

No. N/A 2

4.2.3.3: Paying Taxes Paying Taxes rank No. 92 92

i) Integrate iTax with other systems

Systems integrated No. N/A 9

ii) Collect Revenue on behalf of County Government of Nairobi

Revenue collected Ksh. M N/A 14,652

iii) Fast-track implementation of the electronic audit selectionprocess.

Implementation Status N/A Full implementation of the RACs

4.2.3.4: Trading Across Borders Trading Across borders Rank 106 5015

i) Port Charter implementation Implementation status % 100

ii) iCMS full implementation, roll Roll out Status Fully Implemented Full roll out of sea

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out and integration with Single Window System

Air Cargo Operations

cargo operations

Integration with SWS Status N/A Full integration of Marine CargoInsurance

iii) Implement integrated scanner strategy

Scanners integrated No 2 2

Rollout of final iScan version

% Developed 10016

iv) Implement RECTS Cargo Coverage by seals % 17 10017

v) Joint verification of cargo at 4

International Airports and 7 OSBPs

Points with full Joint verification

No. N/A 1 OSBP - Moyale

vi) Scaling up of ICD Embakasi operations.

Containers (40ft) scanned on offloading

% 60 80

4.2.3.5: VAT Refunds Strategy Refunds clearance Days 133 90

i) Integrate iTax-Refunds with iCMS

Timelines Timelines 100% roll-out

ii) Implement TIMS Implementation status % N/A 10018

iii) Review and automate thecurrent

manual refunds risk rating framework

Automation Level Status N/A Implementation of Revised Framework

iv) Undertake Refunds Business Process Reengineering

Status Status N/A Approved Refunds BPR Framework

v) Lobby National Treasury to

change the VAT refund process

so that VAT is paid net of

refunds

Framework Status N/A Submit proposal to

the National

Treasury on change

of VAT process.

4.2.3.6: Initiatives to reduce

uncertainty in the administration

of tax statutes

Implementation Status of the initiatives

% 100 100

i) Apply legislation in line with the letter and spirit of the law

Judgements analysed No N/A 280

Legal awareness &Lessons learnt from Court CasesStakeholder engagements held in regions

No. N/A 7

ii) Ensure the presence of a well-functioning mediation process.

Cases resolved out of Court/TAT

No. 90 307

PERSPECTIVE: BUSINESS PROCESS

STRATEGIC OBJECTIVE: SIMPLIFICATION OF CUSTOMER FACING SERVICES AND DATA INTELLIGENCE DRIVEN BUSINESS PROCESSE

STRATEGIC OUTCOME: DATA

AND INTELLIGENCE DRIVEN

ORGANIZATION

Cost of collection % 1.44 1.4

On-time filing % 53 80

4.2.4.1: Implementation of the 3rd KRA Wide ICT Strategy (2018/2019 – 2020/2021)

Automation levels % 93.1 9719



i) Enhancing existing systems to offer integrated, simple, cost-effective and reliable services

ii) Improve IT governance

• Attain and maintain ISO 27001 certification

ISO 27001 Certification Status 100 100%

• Develop Online ICT

Applications under Digital

Government economy

Programmes

Implementation % N/A 90

4.2.4.2: Implementation of Data Governance Framework

Data Utilization Index % 62 77

i) Implement DWBI solution Work plan implementation % 35 100

•Contracting for

DWBI project

balance of scope• DWBI

performance optimization•Implementation of remaining subjectareas reports and dashboards

ii) Develop and implement 3rd party data framework

Implementation Status N/A Implementation of

3rd party data

framework

4.2.4.3: Business Continuity and ISO Maintenance

implementation of the initiatives

% 100 100

i) Enhance ICT Disaster Recovery

preparedness through upgrade of Times Towers Data Centre

Upgrade of Times Towers Data Centre

Status 0% 100

ii) Achieve ISO 9001:2015 Recertification

ISO 9001:2015 certification Certificate N/A Achieve ISO 9001:2015Recertification

iii) Maintain sector specific Accreditation to ISO 17025:2017for Testing and Calibration laboratories

Maintenance of accreditation % N/A 100

iv) Implement an Integrated

Management System (IMS) of ISO Standards

IMS Policy developed, approved and implemented.

Status N/A IMS Policy approved

4.2.4.5: Organizational Restructuring

Implementation of the initiatives

i) Streamline Corporate Policy Unit

Implementation of Initiatives % 100% 100%

ii) Implement BEA Framework Implementation % 100% 100%

iii) Implement (BPM Framework) Blueprints developed % 100% 100%

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