1. SIXTH CORPORATE PLAN 2015/16 - 2017/18 HIGHLIGHTS ON KEY ASPECTS

2. 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

3. 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
CORE
VALUES
Trustworthy Ethical Competent
Helpful
During the plan process it became apparent that there was need to review and revise the Vision, Mission and Core Values.
The new vision needed to capture KRA’s pivotal role in Kenya’s transformation.
Mission needed to reflect KRA’s approach to the taxpayer engagement.
Our core values needed to be reduced to a manageable number and aligned with the new direction
KRA commenced the process of changing the tax compliance approach to a customer facilitation focused model
i.e. building of trustful relationships both internally and externally

4. 3 THEME
‘Building Taxpayer Trust through Facilitation for Enhanced Tax Compliance’
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
Key lessons learnt from the process are: the need for interventions to be aligned to the targets, need for limited number of targets, appreciation of environmental constraints and recognizing funding constraint.

5. 3 Theme (Cntd) Deepen staff change management programme
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
Key lessons learnt from the process are: the need for interventions to be aligned to the targets, need for limited number of targets, appreciation of environmental constraints and recognizing funding constraint.

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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)

12. 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

13. 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)

14. 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

15. Selected Key Performance Indicators
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
13,500
VAT/total revenues %
25%
35%
Active Taxpayers
1,600,000
4,000,000
Property Income: % of income
7.7%
Customer satisfaction
65%
Employee satisfaction
Cost of collection
1.3%
1.25%
KESRA fee paying students
N/A
5,000
Electronic filing /payment
20%
Goods under electronic control (customs)
23%
100%
Green are the KPI’s to be monitored at National level,
while the rest are to be monitored at Ministerial level.
The guidelines require 4 National level indicators and to be monitored at Ministerial level.