Kenya Revenue Authority is set to strengthen its digital infrastructure after the National Treasury allocated Sh2 billion for the establishment of a data recovery facility and the improvement of an ICT centre at Konza Technopolis.
The funding appears in the first supplementary budget for the financial year ending in June, which was tabled in the National Assembly by Treasury Cabinet Secretary John Mbadi.
The move is expected to support the tax authority’s increasing shift towards automated and digital systems aimed at improving efficiency and boosting revenue collection.
A data recovery centre is used to restore information that may be lost, damaged, deleted by mistake, or become inaccessible due to system failures. The planned facility will help ensure that the authority can retrieve important data and continue operations with minimal interruption whenever technical problems arise.
KRA has previously indicated that it is expanding the use of digital platforms across its operations as part of efforts to modernise tax administration. The transition has created the need for stronger technological support systems, including secure data storage and recovery facilities that can sustain the authority’s growing digital processes.
In addition to the technology investment, the Treasury has also allocated funds to support the leasing of motor vehicles for KRA. The move is seen as part of wider efforts to strengthen the agency’s operational capacity as the government looks to improve tax collection while facing limited options for introducing new tax measures.
The development budget under the National Treasury’s General Administration, Planning and Support Service vote, where KRA’s development spending is included, has recorded a sharp rise. The allocation has more than tripled after an additional Sh4.871 billion was added to the vote.
“Additional provision is on account of enhancement of budget for the Kenya Revenue Authority, shortfall for motor vehicle leasing, and enhancement of Operations & Maintenance,” said the Treasury.
The supplementary estimates represent the first adjustment to the national budget for the financial year ending in June. Once approved, they will increase the country’s total spending by Sh287.4 billion, reflecting an 11.3 percent rise from the original budget.
