The Kenya Revenue Authority (KRA) has recommended a further review of tax exemptions on goods and services as it identifies a Sh1.78 trillion gap in collections of value-added tax(VAT).
An internal report from the tax authority reveals that the difference between actual and potential tax collections from VAT amounts to 11.8 percent of gross domestic product (GDP) as of the end of 2023, which translates to a nominal Sh1.78 trillion.