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KRA Collects Sh946 Million Amid Smuggling Crackdown

254 by 254
October 15, 2024
in Business, Entrepreneurship, Finance
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Kra Collects Sh946 Million Amid Smuggling Crackdown
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The Kenya Revenue Authority (KRA) collected Sh946 million in taxes from the Western region last month, following a series of measures aimed at combating smuggling through the porous borders with Uganda and Tanzania.

Enhanced surveillance and enforcement efforts across ten counties have boosted customs revenue at the Malaba, Busia, and Isebania One-Stop Border Posts (OSBPs) as well as the Lwakhakha satellite station.

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Patience Wanjau, KRA’s Western regional coordinator, noted that while the total fell short of the Sh1 billion monthly target, the results are encouraging given the current economic challenges.

Malaba OSBP alone contributed Sh540 million, benefiting from improved truck clearance efficiency, making it a vital route for goods heading to Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo (DRC).

“This highlights the importance of this border post. Just as Mombasa is critical to Kenya, Malaba is essential for Uganda, driving significant trade flows. By serving Uganda, we are also reaching deeper into East and Central Africa,” she explained.

Wanjau mentioned that KRA is collaborating with Ugandan authorities to ensure all scanners operate continuously to expedite the clearance of both inbound and outbound cargo.

To further enhance efficiency, KRA has established a customer service center at the border post, bringing together various government agencies from Kenya, Uganda, and the DRC to facilitate trade.

“With the service center in place, we anticipate an increase in trade volumes, encouraging more traders to utilize this facility,” she added.

Small-scale cross-border traders have been provided space at the center to support their operations and expand KRA’s tax base.

Wanjau emphasized that traders will have access to all KRA services at the center, including PIN registration and tax return filing, to ensure compliance with regulations.

“Alongside customs, we are making KRA services accessible to small traders as we also collect domestic tax, which aligns with our goal to broaden the tax base,” she stated.

At the commissioning of the center in Malaba, KRA Deputy Commissioner for Border Control and Enforcement Chege Macharia noted that the facility will enhance cargo clearance turnaround times, leading to increased revenue.

“The OSBP was originally designed with offices scattered throughout, causing clearance agents to waste time moving between them,” he explained. “By centralizing services, we will significantly reduce clearance times, improving our efficiency and revenue generation.”

Tags: Democratic Republic of Congo (DRC)domestic taxKenya Revenue Authority (KRA)KRA Deputy Commissioner for Border Control and EnforcementMalabaOne-Stop Border Posts (OSBPs)PIN registrationtax return filingWestern region
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