Friday, October 31,
2025 - Kenya is set to embrace artificial intelligence in its tax
collection strategy, according to Presidential Council of Economic Advisors
Chairperson, David Ndii.
Speaking during a stakeholder engagement on Friday, October
31st, Ndii announced that the Government intends to shift from
manual tax collection to AI-powered systems within the next two years.
“In a year or two, most of our taxes will be collected by
algorithms and not by people,” Ndii stated.
He emphasized that the move is part of a broader plan to
expand the country’s tax base and reduce administrative burdens.
Ndii cited Kenya’s high penetration of digital finance,
particularly mobile money, as a key advantage in implementing algorithm-driven
tax systems.
He explained that traditional methods of collecting small
taxes are inefficient and costly, but AI offers a scalable solution.
“We’re leveraging computing power to reduce transaction
costs. It’s no longer viable to collect small taxes manually,” he said.
The Oxford-trained economist also revealed that President
William Ruto’s administration is developing machine learning models capable of
automatic tax assessment.
As a result, the Kenya Revenue Authority (KRA) will
transition from enforcement to systems management.
Beyond automation, Ndii announced plans to restructure the
Value Added Tax (VAT) system.
He criticized the current model for favoring manufacturers
through refund mechanisms and proposed a shift toward direct consumer benefits.
“Technology now allows us to give VAT refunds to consumers
directly,” Ndii noted.
“But to receive a tax credit, you must first be a taxpayer.”
The Kenyan DAILY POST
0 Comments