The Kenya Revenue Authority (KRA) has taken a major step in supporting micro and small businesses with the launch of a new unit — the Department of Micro and Small Taxpayers (MST). This initiative, aimed at businesses with an annual turnover of KSh200 million or less, is part of a broader strategy to improve KRA tax compliance for small businesses and streamline tax processes for MSMEs in Kenya.
The department is currently under the leadership of Acting Commissioner George Obell, a seasoned tax expert with over 28 years of experience. His leadership is expected to steer the new unit toward delivering tailored solutions and greater inclusion for the country’s underserved business sector.
What This Means for Small Businesses
Historically, many small and micro enterprises struggled with complicated tax procedures and limited access to information. The KRA micro and small taxpayers department seeks to change that by offering:
- Tailored support for MSMEs
- Simplified tax registration and filing processes
- Increased tax education and awareness campaigns
- Sector-specific strategies to address industry challenges
Driving Simplified and Inclusive Taxation
With its launch, the MST Department is expected to introduce key reforms such as digital tools that simplify compliance, incentives for consistently compliant businesses, and targeted outreach for informal traders looking to formalize. These moves align with KRA’s broader digitization and tax base expansion efforts.
The establishment of the Micro and Small Taxpayers Department is a positive step toward empowering Kenya’s MSMEs. By delivering support that is practical, inclusive, and customized, KRA is building a more responsive tax system. Under George Obell, the department is well-positioned to address long-standing barriers, making tax compliance simpler and more efficient.
