The ongoing collaboration between KRA and the Kenya Private Sector Alliance (KEPSA) highlights a recognition that effective tax policy requires private sector input. In 2026, this engagement focuses on balancing enforcement with economic growth, particularly as digital compliance measures intensify.
Through structured dialogue, the private sector has raised concerns about compliance costs, system readiness, and the impact on SMEs. KRA, on its part, has committed to phased implementation, system improvements, and dispute resolution mechanisms.
For businesses, this partnership offers an opportunity to influence policy direction while preparing for inevitable reforms. Participation through industry associations and professional bodies is increasingly important to ensure that tax policies remain practical and growth-oriented.
The collaboration between the Kenya Revenue Authority (KRA) and the Kenya Private Sector Alliance (KEPSA) has become increasingly significant as Kenya navigates complex fiscal pressures in 2026. This engagement reflects recognition by policymakers that effective tax administration must balance revenue mobilisation with economic sustainability. For businesses, this partnership signals a shift toward consultative tax policy development rather than purely enforcement-driven reforms.
KEPSA has consistently raised concerns on behalf of businesses regarding the cost of compliance, system readiness for digital tax tools, and the disproportionate impact of enforcement measures on SMEs. In response, KRA has committed to structured stakeholder forums, sector-specific guidance, and phased implementation of certain reforms. This dialogue has influenced areas such as eTIMS rollout timelines, dispute resolution processes, and taxpayer education initiatives.
For companies, this evolving relationship presents both opportunity and responsibility. Businesses are encouraged to engage through industry associations, professional bodies, and public participation forums during Finance Bill consultations. Proactive engagement allows firms to anticipate regulatory changes, align operations early, and avoid compliance shocks.
From a governance perspective, boards and senior management must recognise that tax strategy is no longer a back-office function. Active monitoring of policy discussions and regulatory signals is essential. Firms that remain informed and engaged are better positioned to adapt to Kenya’s dynamic tax environment while maintaining compliance and competitiveness.
