David Ndii, President William Ruto’s economic advisor, recently outlined a new approach to tax collection targeting small businesses in Kenya, involving the use of paybill numbers and till numbers to streamline revenue collection.

In a statement, Ndii explained that the government aims to capture a broader tax base by leveraging digital transactions, specifically focusing on small and informal businesses that often operate outside traditional tax systems.

According to Ndii, the new strategy is designed to integrate tax payments into routine business transactions, making compliance easier and more efficient for business owners.

Small businesses will reportedly use designated paybill and till numbers for customer payments, allowing the Kenya Revenue Authority (KRA) to automatically deduct a small percentage as tax.

Ndii argued that this method minimizes the need for complex tax filing processes for small-scale entrepreneurs and provides the government with a steady revenue stream from previously untaxed transactions.

While the proposal aims to increase Kenya’s tax revenue and reduce reliance on larger taxpayers, it has sparked debate among small business owners, some of whom are concerned about additional financial burdens. However, supporters see it as a forward-thinking move that will ensure equitable tax contributions across all economic sectors, aiding in national development.

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