KRA looking to net Ksh2 billion from small scale traders

The Kenya Revenue Authority (KRA) plans to collect an additional Ksh2 billion annually from small traders following the start of enforcement of a new tax.

The Authority says it has launched talks with county administrations to help it in the enforcement of the tax that targets small and medium enterprises (SMEs) making annual revenue of below Ksh5 million.

Informal traders falling in the threshold are supposed to pay a presumptive tax at the rate of 15 percent of the single business permit fee issued by a county government when renewing their permits effective this month.