The government of Kenya disclosed on the nation’s Taxpayer’s Day celebrated on November 1 that it had garnered over $77.5 million (approximately 10 billion Shillings) in crypto tax. Notably, the Kenya Revenue Authority (KRA) accumulated this from taxing 384 crypto users in the 2023-2024 fiscal year.

Significantly, according to Anthony Mwaura, the KRA chairman who spoke at the State House in Nairobi during the celebration, this was the pioneer contribution of crypto tax to the nation’s total tax revenue.

Furthermore, the KRA chairman spoke on future collaborations with the Central Bank and other regulatory bodies to enhance taxation systems in the upcoming fiscal year.

Accordingly, Mwaura’s speech included talks on incorporating more crypto and other digital asset users to be taxed. Consequently, he highlighted many tax gains if these measures were implemented the following year.

“If we are able to talk and agree with the central bank within this year, and be able to talk to those people who deal with Bitcoin and everything, we will be able to net KES 60 billion (approximately $465 million),” said Anthony Mwaura.

Also, the KRA is set to collect over $150 billion by 2030, with crypto tax being a significant contributor.

KRA to Enhance Crypto Tax Collection Efforts

Lack of clear regulatory guidelines, inadequate funding, and the volatility of crypto assets affect the KRA’s capacity to monitor crypto transactions and tax crypto traders correctly. As a result, the KRA is enhancing its approach to taxation.

According to the Kenya regulator, “KRA continues to leverage disruptive technology such as Artificial Intelligence, Machine Learning and data analytics to deliver tools that enable market customized solutions. KRA is expected to collect Kshs. 20.486 trillion over the next five years, as per the Budget Review and Outlook Paper, 2023.”