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SIXTH CORPORATE PLAN

2015/16 - 2017/18

HIGHLIGHTS ON KEY ASPECTS

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1 BACKGROUND Plan aligned with key National Policy Objectives

Vision 2030 Robust Revenue Mobilization Trade Climate Improvement Deepening Regional Integration Strengthening Border Control

• Improves on 5th Plan by better aligning Targets and Tasks

• Seeks to deepen/entrench Customer Focus culture

Vision & Theme – Customer centric

Internal processes re-organization

Deepening automation

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2 VISION, MISSION, CORE VALUES

THEME

VISION To facilitate Kenya’s

Transformation through Innovative,

Professional and Customer-Focused, Tax Administration

MISSION Building Trust

through Facilitation so as

to foster Compliance with Tax and Customs

Legislation

COREVALUES

Trustworthy Ethical

Competent Helpful

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3 THEME

Seeks attitudinal change - from Enforcement Approach to Building Taxpayer Trust through Facilitation

Emphasis on creating environments that foster Voluntary Compliance

Convenience – electronic and mobile service platforms, customer service outlets (iTax, Huduma services)

Customer outreach – reorganize field operations to focus on education and taxpayer support activities

‘Building Taxpayer Trust through Facilitation for Enhanced Tax Compliance’

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3 Theme (Cntd)

Professionalize audit and investigation activities – set up specialized audit centres and re-focus investigation strategy.

• Deepen staff change management programme

Clarity in departmental priorities – e.g. trade facilitation for C & BC

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4 VISION

Outward rather than Inward looking Focus on Kenya not KRA – rationale for KRA existence Aligned with National aspirations Clarity on how to deliver Vision

Innovative practices – processes & technology Customer Focus – attitudinal change Professionalism – skills & ethics

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5 CORE VALUES

Condensed into 4 from previous 8 Aligned to Vision & Theme Emphasis on promoting Public Trust & Confidence Achievement supported through robust process,

technology and people change programmes

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6 KEY STRATEGIC THRUSTS Enhanced Public Service delivery – internal process,

legal and technology reforms Revenue Enhancement – leverage technology to

facilitate taxpayer base expansion and improve detection capacity (third party data usage, data analytics, leverage Single Collector status), enhance Tax Dispute Resolution

Border Control – entrench Lead Border Agency role (BCoCC, OSBP) takeover), establish effective internal structures/collaboration mechanisms, implement effective technology systems (Cargo Scanning and ECTS solutions)

Financial Sustainability – develop strong rapport with National Treasury, explore alternative funding options

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7 BALANCED SCORE CARD PERSPECTIVES

7.1 People Perspective Key Goal: A professional, ethical and courteous workforce Key Actions:

• Promote internalization of Core Values

• Revamp HR processes

• Drive employee satisfaction – improve work environment, terms of service.

• Promote ethical behaviour – rewards & sanctions, IGS implementation

• Implement Leadership Development Programme

• Revamp KESRA to support dynamic staff capacity building

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7 Balanced Score Card Perspectives (Contd.)

7.2 Customer Perspective

Key Goal: High quality customer service that promotes strong brand acceptance

Key Actions:

• Reform approach to Marketing & Publicity

• Raise customer satisfaction levels – target 80% by 2017/18

• Build strong stakeholder partnerships – business, professionals, OGAs - structured calendar of events

• Support strong brand building - robust marketing effort

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7 Balanced Score Card Perspectives (Contd.)

7.3 Process Perspective

Key Goal: Strengthen capacity through Organizational and Business Process reforms

Key Actions:

• Underpin technology as Strategic Investment

• Champion legal and internal process reforms (conduct of audits and investigations, dispute resolution, Customs procedures)

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7 Balanced Score Card Perspectives (Contd.)

7.3 Process Perspective (Contd.)

• Transit to fully automated Single Collector

Seamless electronic platforms for all operations – iTax, iCMS, ERP

Intelligence/technology driven interventions –reduce scope for human discretion.

Risk profiling & audit selection Customs interventions

Develop Data Warehouse solution

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7 Balanced Score Card Perspectives (Contd.)

7.4 Revenue Perspective

Key Goal: Enhance Revenue mobilization through taxpayer base expansion, implementing innovative, intelligence driven compliance processes.

Key Actions:

• Implement actions under 7.1, 7.2, 7.3

• Expand taxpayer base through innovative recruitment (WH and other data)

• Champion innovative tax regimes – rental income, SBT (alternatives to ToT)

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7 Balanced Score Card Perspectives (Contd.)

7.4 Revenue Perspective (Contd.)

• Enhance audit efficiency – ACEs, Risk-Based selection

• Revamp Debt Management – consolidation, skills

• Implement Alternative Dispute Resolution – hasten dispute resolution.

• Leverage County Network

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Selected Key Performance IndicatorsINDICATOR MEASURE BASELINE 2017/18 TARGET

Revenue collection Kshs. million 1,067,749 2,050,626

Paying Taxes ranking Number 102 50

Pre Arrival declaration % of imports 70%

EACC integrity level No. 4 5

ERM tools implementation % of business units 54% 80%

ADR revenues Kshs. mn 0 13,500

VAT/total revenues % 25% 35%

Active Taxpayers No. 1,600,000 4,000,000

Property Income: % of income % 7.7%

Customer satisfaction % 65% 80%

Employee satisfaction % 65% 80%

Cost of collection % 1.3% 1.25%

KESRA fee paying students No. N/A 5,000

Electronic filing /payment % 20% 80%

Goods under electronic control (customs)

% 23% 100%