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4TH AFRICA CONGRESS OF ACCOUNTANTS (ACOA)Transforming African Economies:

Harnessing ICT in the Public Sector

Kampala, Uganda4TH MAY 2017

J. K. NJIRAINI, MBSCOMMISSIONER GENERAL

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Outline

1) KRA Facts & Figures

2) Tax & Development

3) KRA Strategic Approach

4) ICT Centrality

5) Conclusions

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KRA Facts & Figures

Established in July 1995 Principal Collector of National Revenues Actual: 2015/16 Approximate 11,758M USD, 2016/17

projected Approximate 13,690M USD (2002/03,1,780M USD)

Tax/GDP – 2015/16: 18.3%, 2016/17: 19.7%

Staff size – 6340 of which ICT – comprises 203 ICT Budget – Approximate – USD 16,938,766

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Tax & Development

Taxation provides basis for democratic governance Taxation makes governments more responsive Taxation promotes accountability through justification Taxation expands State capacity through structures

to support collection & accountability Taxation provides basis for sustainable development Weak taxation structures associated with weak State

structures – inability by State to internally sustainitself

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Tax & Development (Cont.d)

Strong imperative for African economies to promotedevelopment of strong tax institutional frameworks

Accountancy profession an integral part of sustainingstrong taxation framework.

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KRA Strategic Approach

Vision: ‘To facilitate Kenya’s Transformationthrough Innovative, Professional and Customer-Focused Tax Administration’

Institutional Transformation anchored as keythematic

Theme: Building Taxpayer Trust throughFacilitation for Enhanced Tax Compliance’.

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KRA Strategic Approach (Cont.d) Three core transformation aspects:

People Process Technology

People Address competence & cultureTECH Core ValuesTrustworthy - ) Robust internal campaign to promote

valuesEthical - )Competent - )Helpful - )

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KRA Strategic Approach (Cont.d)

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KRA Strategic Approach (Cont.d)

Process Reform legal and administration processess to

ease compliance burden Key legislative interventions since 2013 enacted

new laws for VAT, Excise Tax, Tax Procedures,Tax Dispute Resolution.

Major reform of internal processes to removeredundancy and align with technology.

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KRA Strategic Approach (Cont.d)

Organizational restructuring to improve efficiencyand underpin performance management.

Ongoing Transformation Programme to entrenchrisk-based approach towards tax interventionsinlcuding compliance & audit activities

Performance based employment for executivecadre

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ICT Centrality

ICT recognised as Strategic Imperative in vision delivery Organizational success predicated upon development of

robust ICT service delivery platforms Comprehensive ICT strategy frameworks developed

since 2005 with latest covering 2011 – 2018. Core objective – to achieve fully integrated electronic

Customer Service by 2018.

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ICT Centrality (Cont.d)

Objective to be achieved through:Deepening of ICT investment – upgradeInfrastructure & systems to meet internal benchmarksEnhancing informaton systems security – invest in

tools and tackle cyber crimeEnhancing ICT service management – people & toolsIncreasing ICT budget allocation to benchmark 8% of

total organizational budgetSystem integration & convergence – no stand-alone

systems

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ICT Technology Architecture DesignThe ICT Vision: To Achieve Full Electronic Customer Service

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Key ICT Products & Status

Domestic Taxes System (iTax) Electronic tax management platform for Domestic

Taxes Front office services (registration, filing, service

requests) fully rolled out since 2014. Ongoing roll out of back office modules –

accompanied with internal process changes to align work practices.

High public acclaim and consistently strong positive customer rating.

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Key ICT Products & Status (Cont.d)

Customs Management System (iCMS) State-of-the-art Customs Management solution to

replace existing older system. Incorporates best practice features including cargo

valuation benhmarking, auto population ofdeclarations, importer risk profiling and chanellingand online cargo auctions, among others.

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Key ICT Products & Status (Cont.d)

Integration with Domestic Taxes system will facilitatestricter control over international trade players Data sharing for compliance enhancement

purposes Compliance enforcement for international trade

players Better control over trade supply chain Presently under pilot and roll out

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Key ICT Products & Status (Cont.d) Customer Relationship Management (CRM) Electronic solution to enhance capacity for

customer relationship management Provide one gateway for customer interaction –

capacity to track and monitor customer issues Provide multiple communication channels for

customer convenience – phone, email, social media Track details on customer interaction performance

– number of calls, call success rate, response times Track caller profiles for business intelligence Expanded call centre resources to support

presently under pilot and roll out

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Key ICT Products & Status (Cont.d)

Entrprise Resource Planning (ERP) Electronic solution to automate administrative

support services for efficiency enhancement Facilitate effective management of access rights

databases Enhance performance management through

business system integration – data exchange Presently under pilot and roll out

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Key ICT Products & Status (Cont.d) Data Warehouse

Electronic solution to provide effective data analytics capability Data Repository from Business Systems that facilitates open

access and data mining Solution to be rollod out in phases commencing June 2017

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Key ICT Products & Status (Cont.d)

Cargo Scanner Management Solution Electronic solution to facilitate centralized management of cargo

scanning Solution to address challenges posed by physical interaction

between staff and cargo owners Central Command & Control facility to receive, analyse and

take decisions on cargo scanning CCTV capability to provide real time surveillance over working

areas. Solution development to commence in June with completion by

December 2017

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Conclusions Extensive ICT programme has resulted in various posistive

outcomes:

Improved customer service – both external and internal Enhanced ability to manage enormous tax information

workload Enhanced opportunities for more effective tax mobilisation

through better intelligence on taxpayer operaitons.

Improved opportunities for accelerated changes to workpractices and staff culture

African Governments need to strongly embrace ICT as the keyenabler in their quest to improve the effectiveness of TaxInstitutuions

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Thank You