Kenya Revenue Authority (KRA) Commissioner General Humphrey Wattanga has shared that the authority is seeking new technologies such as Artificial Intelligence and Machine Learning to analyse large data sets and identify tax evasion patterns.

Speaking at the 2024 KRA Annual Summit, he said that the move would not only be beneficial in enhancing revenue mobilization but would also improve accuracy and compliance.

“AI and Machine Learning will analyse vast data sets to identify tax evasion patterns optimize resource allocation and predict future revenue streams. Ultimately, integrating technology will not only boost tax collection but also foster trust and transparency within the tax system,” Wattanga stated.

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He assured that KRA will leverage technological advancements in this world of rapid innovations driving the global economy.

In attendance was Prime Cabinet Secretary Musalia Mudavadi who noted the importance of integrating technology in the tax collection system.

He explained that he had witnessed first-hand how automated customs procedures have reduced cargo clearance times across the East African Community border points.

Similarly, using electronic invoicing systems will help integrate the informal economy into the formal tax base and widen the scope for domestic resource mobilization.

Data analytics, artificial intelligence and machine learning will enable tax authorities to identify trends and improve compliance and risk profiling whilst forecasting revenue with greater accuracy.

“Innovation, from digital taxation platforms that simplify compliance to blockchain technologies that enhance transparency in trade logistics, offers powerful tools for revenue generation and efficient trade management,” he said.

Treasury Cabinet Secretary John Mbadi called on engagements and partnerships with stakeholders to enable governments to develop policies that encourage investment, job creation and economic growth.

“Such engagements, centred on shared goals and a unified vision are critical to shaping effective policy frameworks and advancing citizen participation in public governance. They also deliver mutual benefits to governments and all stakeholders.”