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The Kenya Revenue Authority (KRA) has initiated plans to integrate all deductions into a single system.

According to a statement from the National Treasury on Friday, June 7, 2024, KRA and other stakeholders are deliberating on plans to integrate statutory deductions for employees through the Integrated Financial Management Information System (IFMIS).

During the meeting to deliberate on the plans to use IFMIS, KRA officials met Treasury Cabinet Secretary Njuguna Ndung’u and Public Service CS Moses Kuria.

Central Bank of Kenya (CBK) and the Integrated Personnel and Payroll Database (IPPD) team were also represented in the meeting.

In a statement shared by the National Treasury, the planned integration is aimed at improving the remittance of Pay As You Earn (PAYE), the National Social Security Fund (NSSF), the National Health Insurance Fund (NHIF) and the housing levy.

“The integration aims to improve remittance efficiency for PAYE, NSSF, NHIF, Housing Levy, Pension Schemes, House Rent, Court Decrees, Hire Purchase, Mortgages, SACCOs, and Bank Loans,” the National Treasury stated.

According to the National Treasury, the taxman will gain accurate, centralised information from IFMIS.

The different government officials however did not reveal the exact date when the integration will be carried out.

2/2 The integration aims to improve remittance efficiency for PAYE, @NSSF_ke, @nhifkenya, @NITA_Kenya, Housing Levy, Pension Schemes, House Rent, Court Decrees, Hire Purchase, Mortgages, SACCOs, and Bank Loans. KRA will gain accurate, centralized information from IFMIS. pic.twitter.com/6CXyz9JIcu

— The National Treasury & Economic Planning (@KeTreasury) June 7, 2024

IFMIS

IFMIS is an Oracle-based Enterprise Resource Planning (ERP) used at both the National and County levels of government. It was introduced in the country to enhance accountability and transparency.

IFMIS has reformed the core PFM systems of budget formulation and execution, public procurement and financial reporting.

“IFMIS has been instrumental in the prudent and transparent use of public resources through increased visibility of financial transactions by the Government. It has also made it possible for integration with other government agencies hence enabling cross referencing of data which has greatly reduced any opportunities for fraud,” the National Treasury states on its website.

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