The Kenya Revenue Authority has asked Parliament to approve changes allowing it to pursue employers who fail to remit pension contributions deducted from workers' salaries.
The KRA (Amendment) Bill, 2026, would give the authority tools already used for tax arrears. These include agency notices, garnishee orders, freezing bank accounts and preserving assets of non-compliant employers.
Unremitted pension contributions stood at Ksh66.41 billion as of June 2026, down from Ksh72.5 billion earlier. The arrears consist of salary deductions collected from employees but not forwarded to pension schemes.
KRA Commissioner General Adan Mohamed told the National Assembly’s Departmental Committee on Finance and National Planning on June 12 that only about 12,000 companies pay taxes. He noted that rental income tax collections remain far below potential.
The National Treasury has set KRA an ordinary revenue target of Ksh2.99 trillion for the 2026/27 financial year. The bill also removes references to repealed laws to align the KRA Act with current legislation.
