Kenya's government plans to overhaul its tax collection system, moving from manual processes to a digital AI-powered approach within the next two years. This shift aims to expand the tax base and enhance revenue collection efficiency.

• David Ndii, Presidential Council of Economic Advisors chairperson, announced that algorithms would collect most taxes, leveraging Kenya's high digital finance penetration.
• The new system will simplify the collection of small taxes, particularly from the informal sector, which was previously deemed impossible due to the high administrative burden of traditional methods.
• The role of the Kenya Revenue Authority (KRA) will evolve from enforcement to systems management as technology takes over key functions.
• Additionally, Ndii revealed plans to restructure Value Added Tax (VAT) distribution, allowing for direct VAT refunds to consumers through technology, rather than solely benefiting manufacturers.