This archive report was first published on 24 July 2019.
On July 24, 2019, the Kenya Revenue Authority (KRA) announced a new partnership with Ecobank to simplify tax collection at border points. This collaboration aims to introduce digital payment and collection solutions to reduce the burden of traditional payment systems.
Through the 'Ecobank payzone' at various border points, clearing and forwarding agents, foreigners, and Kenyans can now pay taxes conveniently. This digital platform allows taxpayers to use mobile banking, internet banking, cards, and point of sales, moving away from the traditional payment systems.
Ecobank's Xpress point agents accept cash deposits, cash withdrawals, and tax payments through a virtual account, eliminating the need for a bank account. According to Robert Kola, Ecobank's Head of Transactional services group, the point of sale (POS) machines accept Visa cards, Mastercard, and China Union Pay.
Josephat Omondi, KRA's deputy commissioner for finance, stated that the digitization has been deployed across various KRA stations, including Namanga, LungaLunga, JKIA, Busia, Eldoret Airport, Lamu, Busia, Malaba, and Loitoktok.
The benefits of this partnership include convenience and flexibility for taxpayers. Additionally, digital payment reduces security risks associated with cash transactions, especially involving bulk cash, and saves time as taxpayers no longer need to visit the bank physically.
