{
  "id": 12473683,
  "title": "IMF says Kenya could raise more revenue without new taxes by fixing tax collection",
  "url": "https://urgent.news/2026/10/06/imf-says-kenya-could-raise-more-revenue-without-new-taxes-by-fixing",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-06T21:30:28.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/imf-says-kenya-could-raise-more-revenue-without-new-taxes-by-fixing-tax-collection"
  },
  "original_language": "en",
  "account": "The International Monetary Fund (IMF) suggests Kenya could increase its tax revenue without raising existing tax rates by enhancing its tax administration and collection methods. The report indicates that stronger tax administration can generate more revenue from taxes already owed, serving as an alternative to introducing new taxes. This could be particularly significant for Kenya, where discussions around revenue collection often revolve around new taxes versus higher burdens on existing taxpayers.\n\nThe IMF estimates that countries with stronger tax administration collect about 1.7 percentage points of GDP more revenue than those with weaker administration. The report also notes that better administration can reduce compliance burdens, which disproportionately affect small and young firms. However, it emphasizes that improved tax administration should not replace necessary additional revenue measures when needed.\n\nThe IMF identifies basic administrative functions as crucial, especially in emerging-market and developing economies like Kenya. Strengthening registration, filing, payment, refunds, and compliance management can lay a solid foundation for further reforms. For Kenya, this implies focusing on the Kenya Revenue Authority's (KRA) capacity to register taxpayers, process returns and payments, manage compliance, and ensure tax obligations are met.\n\nThe IMF's analysis extends beyond revenue collection, arguing that better-designed tax systems can support economic growth without resorting to broad tax cuts. By making tax systems more efficient, governments can lower production costs, encourage investment and firm growth, and ease compliance burdens. For Kenya, this could mean reevaluating the debate over raising revenue and focusing on the potential to collect more from existing taxes through improved administration.",
  "summary": "Kenya could potentially raise more tax revenue without increasing existing tax rates by improving how taxes are administered and collected, according to findings in a new IMF analysis that shifts attention from higher taxes to closing gaps in tax administration. The IMF says stronger tax administration can generate significantly more revenue from taxes already due, […]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}