“Digital

Transformation in
Tax Administration”

ICT STRATEGY
2018-2021

‘Towards Data
Driven and
Intelligence Led
Decision Making’
 Digital
Transformation
in Tax
Administration

‘Towards Data
Driven and
Intelligence Led
Decision Making’

ICT STRATEGY 2018 – 2021

3
 FOREWORD

T
he advancement on the automation front and
increased digitization in the economy has opened
opportunities to increase the use of data to drive
compliance and replace the current enforcement
model with data driven compliance. Currently,
technology trends, such as Big Data analytics, artificial
intelligence (AI), machine learning, the Internet of
Things (IoT), mobility and cloud computing have brought
Digital
Transformation a huge impact on tax administration. It is on this basis
in Tax that KRA has been at the forefront in leveraging on
Administration
technology a game changer and a business enabler in
‘Towards Data Driven tax administration.
and Intelligence Led The investment in technology propelled digitization and
Decision Making’
simplification of tax administration processes and in-
tegration of systems with other stakeholders leading
to attainment of a single view of the taxpayer. This has
played a great role in contributing to tax revenue growth
from Kshs. 224B in 2003 to Kshs. 700 billion in 2012.
This trend has continued over the years to Kshs1.4 Tril-
lion in 2017-18 from Kshs1.3 Trillion in 2016-17.
This 3rd KRA-Wide ICT Strategy is aimed at transform-
ing the Authority into a truly customer focused orga-
nization, through harnessing technology investment
gains to transform the taxpayers experience, transit to
a data driven, risk based and intelligence-led tax ad-
ministration.
It is my hope that this Strategy will make the interac-
tion with the Authority satisfying and ultimately enable
ICT STRATEGY 2018 – 2021

us to mobilize the much-needed revenue for the gov-

ernment development agenda.

J.G. Mburu
Commissioner General

4
REMARKS FROM
COMMISSIONER

T
his third KRA-Wide ICT Strategy is aligned to the
Seventh Corporate Plan and it is based on the
four balanced scorecard (BSC) perspectives.
The Strategy will guide the technology investment in
the Authority in the next three years.

Automation is central to the KRA Transformation

Agenda. This Strategy focuses on building staff ca-
Digital
pacity to drive technology inventions for business Transformation
enablement and providing the tools and capability in Tax
Administration
that enable staff mobility, via telecommuting and vir-
tual workspaces with a view to enhance KRA attrac- ‘Towards Data
tiveness and staff productivity. Driven and
Intelligence Led
Decision Making’
This Strategy has also given special focus on cus-
tomer experience by providing capabilities that en-
hance service delivery, bridging the gap between ICT
and business in order to increase customer satisfac-
tion.

The focus on business perspective is geared towards

enhancing existing business systems to offer inte-
grated, simple and cost effective services. Further,
the ICT Strategy seeks to increase uptake and use of
technology for operational excellence through better
IT governance framework. It also seeks to optimize
IT spend and manage the overall cost of operations.
ICT STRATEGY 2018 – 2021

Dr. David Kinuu

Commissioner, Corporate Support Services

5
 REMARKS FROM DEPUTY
COMMISSIONER - ICT

T
The 2nd ICT Strategy 2014/15 to 2017-18, running
over the 6th Corporate Plan period focused
on digitization of the business processes and
providing automation capabilities to enhance business
and revenue collection. The next frontier for the 3rd
ICT Strategy, is to enhance business systems and
integrations, exploiting emerging technologies to
implement sound platform(s) and enable multichannel
Digital
Transformation communication of business systems. Further, it aims
in Tax at upscaling the business applications to run on
Administration
mobile platforms whilst increasing the use of self-
‘Towards Data Driven service platforms to enhance compliance and expand
and Intelligence Led the tax base. As such, the Division endeavors to;
Decision Making’

1. To make KRA a customer-centric organization.

We plan to push our services to mobile platform, to
intuitively deliver real-time 360° view of taxpayers
and customize e-services through improved customer
journey mapping. We recognize the emerging challenges
brought about by increase in cyber-crime and identity
theft. We commit to employ modern and best mix of breed
technologies to secure corporate data and systems.

2. With cloud computing services becoming increasingly

mature, we shall build an internal KRA cloud and
use public cloud platforms based on government
policy(ies) and risk assessment. We shall also lobby for
appropriate policies to enable utilization of emerging
ICT STRATEGY 2018 – 2021

technologies to transform tax administration.

3. We shall strive to contain the Total Cost of Ownership

(TCO) through adoption of best practices in acquisition
and deployment of technology solutions, and ensure full

6
compliance with government policies in the acquisition
and implementation of IT solutions and services.

4. Our staff are the cornerstone of our digital We will enhance

transformation journey. Therefore, we aim to revamp the channels for
ICT skills on emerging technologies and build a taxpayer services
competent and motivated ICT staff who will be with the sole aim
instrumental in driving digital transformation agenda of leaving them
Digital
to drive revenue mobilization and improved service more satisfied Transformation
delivery across KRA business areas. We shall strive with their overall in Tax
Administration
to retain core ICT skills, empower staff to work from experience. This
anywhere and anytime, through implementation of End will be achieved ‘Towards Data
Driven and
User Computing Solution based on VDI technology. through use of Intelligence Led
simplified mobile- Decision Making’
We will enhance the channels for taxpayer based application
services with the sole aim of leaving them more solutions
satisfied with their overall experience. This will be and feedback
achieved through use of simplified mobile-based framework.
application solutions and feedback framework.

We shall strive to deliver the initiatives identified in

this plan to truly transform KRA to be among the
leading revenue authorities in the world in the use of
technology in tax and customs administration.

George Muraguri, CPA (K), CGIT

Deputy Commissioner, ICT
ICT STRATEGY 2018 – 2021

7
 TABLE OF Foreword
Remarks from Commissioner
4
5
CONTENTS Remarks From Deputy Commissioner – ICT 6

Table of Contents
Acronyms and Abbreviations 10

1. Introduction 12
2. Evaluation of Implementation
of the 2nd ICT Strategy 14
2.1. Achievement and Key Challenges of the
2nd ICT Strategy 14
3. Development the 3rd KRA ICT Strategy 20
3.1. Methodology Used 20
3.2. Organisation of the Third KRA ICT Strategy 21

4. Strategic Analysis of the

ICT Environment 22
4.1. PESTEL Analysis 22
4.1.1 Political 22
4.1.2 Economic 22
4.1.3 Social 23
4.1.4 Technological 23
4.1.5 Environmental 24
4.1.6 Legal 24
4.2 SWOT Analysis 25
4.3 Benchmarking 26
4.4 Confrontation Framework 27

5. Vision, Mission, Theme and Core Values 28

5.1. ICT Vision 28
5.2. ICT Mission 28
5.3. Theme for 3rd ICT Strategy 28
5.4. ICT Core Values 28
6. Strategic Objectives, Strategies,
Outcomes and Key Initiatives 30
6.1. People Perspective 30
6.2. Business Process Perspective 32
6.2.1 Business Systems 32
6.2.2 Information Infrastructure
and Business Enablement 34
6.2.3 ICT Infrastructure 37
6.2.4 Information Systems Risk Management 38
6.2.5 Customer Perspective 39
6.2.6 Financial Perspective 40
6.2.6.1 ICT Projects Management 41
6.2.6.2 ICT Governance 41

7. Strategy Implementation 44
7.1. Implementation Plan 44
7.2. Alignment with Other Internal Components 44
7.2.1 Budget Alignment 44
7.2.2 Structure Alignment 44
7.3. Communication of the Strategy 45
7.4. Risk Management Framework 45
7.5. Monitoring and Evaluation 46
7.6. Budget Implications 46
 ACRONYMS &
ABBREVIATIONS
AMC Annual Maintenance Cost
BCM Business Continuity Management
BET Business Enablement through Technology
BYOx Bring Your Own anything
CBK Central Bank of Kenya
CCB Contribution to Core Business
COBIT Control Objective for Information Technology
CRM Customer Relationship Management
DC Deputy Commissioner
Digital
Transformation DWH&BI Data Warehouse and Business Intelligence
in Tax ECTS Electronic Cargo Tracking System
Administration
ERP Enterprise Resource Planning
‘Towards Data Driven ESB Enterprise Service Bus
and Intelligence Led
Decision Making’ EUP Economic and Upside Potential
GDC Government Data Centre
IaaS Infrastructure as a Service
iCMS Integrated Customs Management System
ICT Information and Communication Technology
ICTA Information and Communication Technology Authority
IGS Information Gathering System
iTax Trademark for the Integrated Tax Management System
ITIL Information Technology Infrastructure Library
ITMS Integrated Tax Management System
KPA Kenya Ports Authority
KRA Kenya Revenue Authority
LAN Local Area Network
M&E Monitoring & Evaluation
ICT STRATEGY 2018 – 2021

PaaS Platform as a Service

PESTEL Political, Economic, Social, Technological,
Environmental and Legal
PC Personal Computer
PIT Project Implementation Team

10
PKI Public Key Infrastructure
PWD Persons With Disabilities
RCoE Requirements Centre of Excellence
SaaS Software as a Service
SLA Service Level Agreement
SLM Service Level Management
SOA Service Oriented Architecture
SWOT Strengths, Weaknesses, Opportunities and
Threats
TIMS Tax Invoice Management System Digital
Transformation
VoIP Voice over Internet Protocol (IP) in Tax
Administration
WAN Wide Area Network
‘Towards Data
Driven and
Intelligence Led
Decision Making’

ICT STRATEGY 2018 – 2021

11
 1. INTRODUCTION
The Kenya Revenue Authority (KRA) was established by an Act of
Parliament, Chapter 469 of the laws of Kenya, which became effective on
July 1, 1995. The Authority is charged with the responsibility of collecting
revenue on behalf of the Government of Kenya.
Specifically, the mandate of KRA is to:
a) Assess, collect and account for all revenues in accordance with all
provisions of the written laws set out in Part I and Part II of the First
Schedule relating to revenue;
b) Advise on matters relating to the administration and collection of
revenue under the written laws or the specified provisions of the
written laws; and
c) Perform such other functions in relation to revenue as the Cabinet
Secretary to the National Treasury may direct.
Digital
Transformation
in Tax
Administration Over the years, KRA’s automation level has grown and today the Authority
significantly relies on Information and Communication Technologies
‘Towards Data Driven
and Intelligence Led
(ICTs) to collect and administer natural taxes. This has been facilitated
Decision Making’ by the Top Management support and enabling legal and regulatory
framework in the country. The ICT Division facilitates the provision of ICT
services both to the internal and external stakeholders. The mandate of
the Division is to support KRA business objectives and also to significantly
play the role of a game changer and business enabler’ in KRA operations
and business transformation.
The achievements realized in automation programmes have been guided
by previous strategic plans, going back to as early as 2005. In the recent
past, the successes achieved were guided by the 2nd ICT strategic plan
whose focus was to enable KRA to become an automated single collector
of taxes. The strategic plan guided the digitization of KRA processes and
upgrade of KRA Wide IT infrastructure. In developing this 3rd ICT Strategic
Plan, we build upon the previous achievements, to springboard KRA to
a truly customer centric organization with simple, smart and intelligent
solutions for business enablement.
ICT STRATEGY 2018 – 2021

The 3rd ICT Strategic Plan is guided by, and aligned to, the 7th Corporate
Plan, and further adopts the 4 balanced scorecard (BSC) perspectives
outlined below:
a) Customer: The focus of the Customer perspective is to provide
customer-centric IT services to both internal and external stakeholders.

12
The Strategy aligns ICT processes to corporate business needs with a view to
enhance ICT service delivery as well as user experience in order to increase
customer satisfaction.
b) Business Process: In the Business Process perspective, the focus is to
enhance existing business systems to offer integrated, smart, simple and
cost effective services in order to increase uptake and use of technology for
operational excellence.
c) People and Tools: In this perspective, we focus on the ICT personnel who
provide ICT services to the end users and indirectly to the taxpayers. The
focus in this perspective is to reduce the gap between ICT, offer personalized
service, monitor staff performance and enhance accountability. The pillar
also aims at building staff capacity on specialized training in emerging areas
that arise from implementation of this Strategy and providing users with
best in class tools for end user computing.
d) Financial: The Financial perspective seeks to optimize on cost of KRA
operations while mobilizing tax revenues. Digital
Transformation
in Tax
Administration

‘Towards Data
Driven and
Intelligence Led
Over the years, KRA’s automation level has grown and today the Decision Making’
Authority significantly relies on Information and Communication
Technologies (ICTs) to collect and administer natural taxes. This
has been facilitated by Top Management support and enabling
legal and regulatory framework in the country.
ICT STRATEGY 2018 – 2021

13
 2. Evaluation of Implementation
of the 2 nd ICT Strategy
2.1. Achievement and Key Challenges of the 2nd ICT Strategy
The 2nd ICT Strategy 2014/15–2017/18, provided a blueprint for the last
three (3) years on ICT investment and service delivery using automation
programmes. The Strategy provided a framework to exploit and leverage
on existing and emerging technologies and adoption of best practices to
transform business processes to achieve full electronic customer service.
The vision was ‘To Achieve Fully Integrated Electronic Customer Service’,
while the mission was ‘To proactively leverage on innovative technologies to
enable and support business through the provision of quality ICT services
and solutions’.
The theme was ‘Consolidation and up scaling the business value of ICT’. The
Strategy was organized in eight strategic themes as highlighted in Figure 1.

Digital
Transformation
in Tax
Administration

‘Towards Data Driven

and Intelligence Led
Decision Making’
ICT STRATEGY 2018 – 2021

Figure 1: Strategic Pillars of the 2nd ICT Strategy

14
The review draws’ us into the following achievements, reasons for
underperformance and lessons;

1) Business Systems: This theme aimed at ‘increasing efficiency and

effectiveness of business systems’. The initiatives in this theme resulted to
digitization of core business process. The difficulties in user requirement
management and project management led to delayed value realization.
The vendor management inadequacies coupled with inability to enforce
technology platform standards and knowledge transfer gaps paved way to
vendor reliance and escalating Annual Maintenance Costs that increased
the overall IT Spend.

2) ICT Infrastructure: The goal of ICT infrastructure theme was to

‘increase availability of business systems and ensure continuity of business
operations’. This Strategic pillar resulted to the development of the New
Data Centre and upgrade of LAN & WAN connectivity in key stations. The
key lessons learnt from this includes the need to;
o Maintain technology platform standards
o Build internal skills capacity and ensure knowledge transfer from vendors How we
performed in
o Have in place technology lifecycle management the 2nd ICT
o Enforcement of SLAs/penalties. Strategy

3) Enterprise Information Infrastructure: The goal of this theme was to

‘establish a managed enterprise information infrastructure to improve the
quality of information’. By the end of the Strategy period, the conceptualization
of Service Oriented Architecture (SOA), Master Information/Data Source
(MDS), Enterprise Service Bus (ESB) were incomplete. In addition, the
Unique Universal Identifier (UUI) was never implemented due to challenges
in roll out of national Public Key Infrastructure (PKI).

4) Business Enablement through Technology (BET): This theme aimed to

‘leverage on ICT to enhance business capability and in turn improve ability
to deliver services and enhance taxpayer compliance’. Three initiatives were
not implemented at all: Geographical Information System (GIS), Emerging
Technologies Standards (ETS) and Infrastructure Architecture due to gaps
on the institutionalization of BET, instability of the ICT infrastructure to
support new systems, e.g. Voice over IP (VoIP).
ICT STRATEGY 2018 – 2021

5) ICT Project Management: The goal of this theme was to ‘improve project
portfolio management in order to enhance value from project investments’.
The key lessons learnt include the need for:
o A central committee/body to ratify/vet all projects implemented
by the Authority
o Discipline in project portfolio management, project management and and

15
 and independent body/division to undertake M&E; and
o Better contracting and vendor relationship management.
6) ICT Risk Management: This theme aimed at ‘enhancing integrity of
ICT infrastructure, systems and information’ where security tools were
acquired. A number of the initiatives were incomplete at the end of the
Strategy period as result of re-prioritization;
o Web Application Firewall (WAF) Solution
o User and Network End-Point Management Solution (NEP)
o Independent IS Audit (ISA)
o Infrastructure and System Access (IMA)
o Single Sign On Capability (SSC)
o National Public Key Infrastructure (PKI)

g) ICT Service Delivery: This theme focused on ‘improving efficiency of ICT

service delivery’. The implementation gaps were attributed to the:
o Inability to recruit or retain core IT to the:
o Inadequate funding to develop staff skills to the required levels and failure
Digital
Transformation to onboard identified industry consultancies on contractual basis; and
in Tax o Inadequate internal capacity to effectively implement the rolled-out
Administration
modules of IT Service Management (ITSM).
9 strategic pillars in
the 2nd ICT Strategy
h) IT Governance: The purpose of this was to ‘enhancing IT governance in
order to enhance compliance with best practice frameworks, standards,
procedures and governance policies’. The implementation gaps were
attributed to the:
o Compliance gap with the adopted IT governance frameworks;
oInability to balance the gap between centralised ICT services and
decentralisation of support staff; and
o Decentralization of support staff.
o Increase in software license cost.
ICT STRATEGY 2018 – 2021

16
The gap analysis of the 2nd ICT Strategy and strategic focus in the 3rd ICT
Strategy are illustratedillustrated in Figure 2 below.
Figure 2: Implementation of 2nd IT Strategy, gap and way forward

Strategic Pillar Implementation Level Gap Way Forward

70% iTax. iCMS, iSupport, 30% iCMS, M-Apps and M-Payments
Business Systems Integration
CRM and iBoard Integration

Alternate DC Private
IT Infrastructure 73% NDC, Upgrade LAN and Stable Network 27% Alternate
Cloud Backup

Information Big Data Analytics

33% DWBI 67% BI, ESB. EDMS
Infrastructure Blockchain

60% CRM, CM, VC/VDI, Mobile, 50% Project

BET Discipline & -
M-Apps and M-Payment
Socio, VoIP and RECTS
Completion Rate
Digital
Transformation
in Tax
Project
Administration
50% Prince 2, PM, PPM and Policy 50% IT Investment Policy and
Management
Cost Mgmt.
Leveraging on the
past Strategy to vision
the future, our next
strategic frontiers
SSO Collaboration,
IT Risk 60% ISMS, 27001, IPS and DAM 40% WAF, DAM
Unified Dashboard

IT Service Delivery 20% Scheme of Lean, Skilled and Motivated

80% Recruited, Trained
Service Staff

IT Governance 80% ITIL, COBIT and Prince 2 20% Enforcement IT Governance and Strategic
Outsource

Level of Implementation of the 2nd

Pillar KRA-wide ICT Strategy Gap Way Forward
ICT STRATEGY 2018 – 2021

Overall, the Division accomplished 74% implementation of the strategic

initiatives against the target of 100% by the end of the Strategy Period i.e.
June 2018.

Figure 3 shows the lessons learnt and the how the same will be addressed
in the 3rd ICT strategy.

17
 Figure 3: Lessons learnt and the proposed way forward in the 3rd ICT Strategy

Lessons Learned Way forward for 3rd ICT Strategy

Business Systems
• Need to build capacity on user requirement • Restructure BTOs and build capacity in user
management and process management to requirement and process management
eliminate system reworks /enhancements. including recruitment of business analysts
ICT Infrastructure
• Need to strengthen internal capacity rather than • Develop and enforce vendor technology
relying solely on consultants /contractors transfer policy /guidelines
• Need to enforce technology platform standards, • Standardize technology platform(s)
technology lifecycle management, reduce number
• Upscale the SLAs management process
of vendors for ease management and enforcement
of SLAs/penalties. • Enhance the capacity of the ICT
infrastructure to support solutions, such
as video conferencing and scanning and
storage of images
Enterprise Information Infrastructure
• Need to lobby with state actors on PKI, data sharing, • Collaboration with relevant state actors on
taxation of digital economy and ecommerce PKI, data sharing and other areas of interest
Business Enablement through Technology
Digital • Strengthen the innovation function implement IT • Review the structure and mandate of the
Transformation
related innovations innovation unit, establish IT innovation/
in Tax
Administration ideation lab.
• Need to manage applications maintenance costs
for business systems • Build in-house capacity to maintain business
Our Lessons from the systems, mobile applications solutions and
previous ICT Strategy other emerging technologies
IT Project Management
• Need to have a competent, empowered office to • Implement IT investment policy
manage corporate project portfolio, disciplined
• Adopt and institutionalize project
project management &projects M&E
management framework: Development
• Need for strong representation of ICT in the KRA life cycle management, Monitoring and
investment budgeting programs evaluation of project, Technology and skills
transfer and Project risk management.
IT Security
• Need for enhanced capacity for managing emerging • Collaborate with other government agencies
IT security threats
• Acquire and consolidate IT security tools
including single sign on and unified security
dashboard
• Strengthen the cyber surveillance function
and resource base
IT Service Delivery
• Restructure and reskill IT service management • Implement floor/account managers
team to reduce the turnaround time in incident and
• Review the skills sets required to provide
issues resolution
ICT STRATEGY 2018 – 2021

support in specialized areas and revamp the

skills sets
IT Governance
• Control of IT Investments through development of • Acquire the services an IT advisor on IT
appropriate policy(ies) projects & Investment oversight
• Need to improve communication and motivation of • Establish a communication function in the
ICT staff Division
• Lobby management on the on the best
reward framework to address the unique
work demands

18
 Digital
Transformation
in Tax
Administration

‘Towards Data
Driven and
Intelligence Led
Decision Making’

ICT STRATEGY 2018 – 2021

19
 3. Development of the 3 rd KRA
ICT Strategy
The 3rd ICT Strategy aims at taking KRA to the next level in terms of adoption
of suitable technologies and solutions with a view to enhance revenue
collection, improve service delivery and compliance using data driven based
decision making. It is recognized that technology is changing by the day, new
technology solutions are forcing the mainstream business models to adapt
to new and complex, borderless business environments. In addition, KRA
is being faced with massive data both from internal and from third parties
that is relevant to KRA business. This provides opportunities for improving
compliance, acts as good source of information for policy changes and
decision-making.
The next sections explain the approaches used in the development of the 3rd
ICT Strategy.

Digital 3.1. Methodology Used

Transformation
in Tax The first step in the development of the Strategy was to establish the current
Administration
status on the implementation of the 2nd ICT Strategy, review of where we
The Methodology want to go, means of getting there and evaluation of the end state. The
adopted diagram below demonstrates the key components on the aspects considered
under the four domains.

Figure 4: Methodology used for developing the Third ICT Strategy

How do we
Where do we How do we
Where are we know we are
want to go? get there?
getting there?
SWOT &
PESTEL Established Develop ICT
Analysis Develop KPI’s
KRA ICT Strategy and targets
Strategic
Direction
Reviewed the KRA & Developed ICT
stakeholders context
Strategy Align KPIs
findings presented in
Chapter 4
IT Strategic Goals
initiatives with Corporate
were developed Plan Targets
and presented in
ICT STRATEGY 2018 – 2021

Chapter 5
Analysed the Align Strategic
lessons learnt Interventions Develop
from the 2nd with Implementation
Strategy strategy Envisioned
as prsented in outcome of 3rd Corporate & and M&E Plans
Figure 3 ICT Strategic as in National
Chapter 5 ICT Plans

20
The development of the 3rd ICT Strategy was driven by internal ICT
employees comprising a team from selected user departments/divisions,
ideas exchanged through workshops, use of questionnaires/interviews and
inputs from an external facilitator who provided general guidelines.
The draft ICT Strategy received inputs from ICT staff, business departments/
divisions, KRA Management (KRA Team One), KRA Board of Directors,
external stakeholders and partners. Members of the public were involved
through the questionnaires hosted on the KRA Website. This 3rd ICT
Strategy document was presented to Team One and the Board for approval.
This participatory approach was deemed most appropriate with a view
to enhance quality of the contributions, exchange of ideals and inculcate
ownership.

3.2. Organisation of the 3rd KRA ICT Strategy

The chapter two presents the review of the implementation of 2nd ICT
Strategy, detailing achievements, challenges and lessons learned. Chapter
Three analyses both internal and external environments and identifies the
strengths, weaknesses, opportunities and threats, by use of the SWOT and
PESTEL frameworks. A final synthesis of the analysis of the environment Digital
is presented using the confrontation matrix from which the strategies are Transformation
in Tax
derived. Chapter Four describes the vision, mission, and core values derived. Administration

‘Towards Data
The Chapter Five, outlines the Strategy in terms of strategic objectives, Driven and
strategies and expected outcomes for each of the strategic themes identified. Intelligence Led
Decision Making’
The Final Chapter outlines how the third ICT Strategy will be implemented.
This includes the implementation plan, prioritization of the strategic
initiatives to be implemented, monitoring and evaluation, ICT organizational
structure and financial implications of the proposed strategic initiatives. It
also identifies the risks that will underlie successful implementation of the
Strategy and the mitigation strategies.

KRA has launched the 7th Corporate Plan(2018/2019 – 2021/2022) that

focuses on the strategic initiatives and programs for the next three years.
The 3rd ICT Strategy aims at addressing the needs as defined in the 7th
Corporate Plan and government directives in adoption of ICT solutions.
These two aspects will form the basis for the initiatives contained in this
document.
ICT STRATEGY 2018 – 2021

21
 4. Strategic Analysis of the
ICT Environment
Strategic analysis involves analyzing both the internal environment
and the external environmental in which the ICT in KRA operates. This
analysis is critical in understanding the conditions within which ICT
operates. Further, strategic analysis provides an appreciation of the
capabilities of KRA and the external factors that affect it. In this analysis,
two frameworks; PESTEL (Political, Economic, Social, Technological,
Environmental and Legal) and Strengths, Weaknesses, Opportunities and
Threats (SWOT) were used, and the results are presented.
4.1. PESTEL Analysis
PESTEL analysis is an external environmental analysis tool outlining the
analysis of operating environment informing the development of the 3rd
Digital ICT Strategic Plan.
Transformation 4.1.1 Political
in Tax
Administration The Government has been implementing a number of e-Government
services through the Ministry of ICT and other ministries and agencies.
Political and
Economical Drivers These e-Government initiatives touches on the needs of the citizenry
and other stakeholders. The e-Government services provide KRA with
opportunities to integrate its systems with third party systems, invest
in big data, analytics and enable tax compliance as well as tax base
expansion. The implementation of Huduma Centres by the Government
across counties also gives KRA the opportunity to use these centres to
provide taxpayer services to the public.
Secondly, the Government in the recent past has centralized all ICT
procurements by ministries, and MDAs to the ICT Authority (ICTA). This
may slow down the Authority’s ICT procurement processes. The Authority
shall engage the ICTA to minimize negative effects on procurement
implications of this strategic plan.
Finally, KRA has implemented a Primary Data Centre, with capacity to
support Government Agencies. ICT will cost share and develop appropriate
policy guidelines to guide on the usage of this facility.
ICT STRATEGY 2018 – 2021

4.1.2 Economic
The implementation of devolved governance structure has created 47
county governments. One of the key opportunities from an economic
standpoint is the ability of KRA to collect revenue for County Governments.
This creates the opportunity for partnering with county governments,
enhancement of business systems and establishment of KRA County
offices to tap the new revenue stream. This will in turn create the
need for increasing presence in the counties making KRA tax services

22
more accessible, reliable and efficient to taxpayers. The Authority shall
continue to enforce strict contracts and service level agreements with 3rd
party service providers, enhance or develop additional online and mobile
platforms to provide the services and increase service delivery touch
points. This approach provides opportunities for our readily available local
ICT talent. KRA shall tap young talented technology graduates from this
pool through annual talent pipeline concept to breed new digital skills and
replace redundant skills to through retirement and other exits. KRA aims to
continue to develop internal skills and at the same time acquire necessary
talents on emerging technologies to address ICT skill gaps. This enhanced
capacity will enable the Authority to rump-up its automation agenda and
deal with emerging challenges.
A key challenge though is some of the third-party sources are reluctant to
integrate with KRA systems. This has potential to slow down the Authority’s
drive for single view of a taxpayer and may lead to lower revenue collection
through revenue leaks. A second challenge is the weak ICT infrastructure in
most of Kenya’s rural areas. This means that KRA might have difficulty in
rolling out its ICT infrastructure in those areas. We intend to address this
challenge by riding on the government network infrastructure (GCCN).
Digital
Transformation
in Tax
Administration
4.1.3 Social
Social and
Kenya has experienced widespread adoption of mobile telephony for Technological
communication and data transfer, electronic banking, mobile money and Drivers
access to eCitizen services. The mobile and electronic platforms present
alternative channels for KRA to serve the taxpayer.
During the Strategy period, KRA shall strive to have its services be accessible
through mobile platforms. The increased connectivity provides threats for
cyber security challenges coupled with, taxpayers becoming sophisticated
with respect to tax evasion. This may result in reduced tax collections
from potential evaders and increased cost of managing compliance. We
shall review our application development strategies with a view to create
competence in mobile application development and also improve on our IS
security strategies to combat cyber-crime.
During the Strategy period, we shall increase the taxpayer satisfaction with
the KRA systems and processes, give adequate information to the taxpayer,
provide better service and eliminate middlemen with a view to enhance tax
compliance from especially non-filers by exploiting the potential for data
analytics. We shall revamp and provide rich and relevant information to
ICT STRATEGY 2018 – 2021

taxpayers using online and mobile platforms in order to enhance compliance.

4.1.4 Technological
The ever-changing technology landscape has brought with it new
opportunities. Key technology advances include big data, Data Lake, data
warehousing, data analytics, distributed ledger technology, artificial
intelligence, cloud computing solutions, containerization of applications,

23
 micro services and application programming interfaces (APIs). We shall
appropriately leverage on these technologies to innovate and support the
achievement of the Authority’s goals. We shall explore the opportunities for
enhancing data driven compliance using big data analytics and integration
of internal and external systems via ESB/APIs and micro-services. We
shall enhance use of the mobile apps/services as an additional channel for
offering tools/solutions for improving taxpayer services and interactions.
The developments in technology have also created new online services
such as on-line shopping, gaming and betting. We shall invest on tools
to tap information on trading behaviors of these new online services and
activities.
ICT security risks have become a major challenge in the public service
as well as other sectors of our economy. To combat the challenges that
come with changes in the technology landscape such as cyber security
threats, technology obsolescence, complimentary security measures
implemented by 3rd party network solutions and infrastructure, the
Authority will deploy robust monitoring tools and implement own private
cloud.

Digital
Transformation
in Tax
Administration 4.1.5 Environmental
Management of electronic waste (e-waste) is a big challenge to many
Economical and Legal
Drivers organizations across the globe. KRA being a user of electronic based
solutions shall strengthen and collaborate with relevant government
agencies on electronic disposals. The key challenges from an
environmental standpoint are a lack of a green ICT policy in KRA. In
view of the level of automation, aging IT equipment and growing quantity
of e-waste for disposal, we shall develop a green ICT policy for KRA in
line with ICTA and National Environment Management Authority (NEMA)
provisions.
4.1.6 Legal
Part of the KRA’s mandate is to collect revenue from all taxable activities
from taxpayers. This implies dealing with personal data from available
sources. However, Kenya lacks an Act of Parliament that gives effect to
Article 31 of the Constitution, which is ‘to regulate the collection, retrieval,
processing, storing, use and disclosure of personal data and for connected
purposes’. The Data Protection Bill has been drafted and undergoing
reviews. This Bill once passed will require changes in the manner
ICT STRATEGY 2018 – 2021

personal data is received, processed, shared and stored. In addition,

there is lack of supportive legislative provisions to support usage of some
of the emerging technologies by public sector organizations, e.g. block
chain and cloud computing. This may limit the exploitation of emerging
or new technologies. We shall collaborate with Ministry of ICT and ICTA
to ensure appropriate policies are in place to enhance utilization of the
emerging technology for digital transformation in tax administration.

24
Finally, Kenya has increasingly become a litigious nation and therefore
there is potential litigation from the external users, given the empowerment
by the bill of rights in the constitution. KRA has institutionalized the
Corporate Data Office (CDO) to facilitate and support Data Governance
and Data Stewardship activities. KRA shall work with Data Governance
Office (once established under the Data Protection Bill) to ensure data
classification; Data Quality, Compliance, Privacy, Security, Architecture,
and IT Governance are compiled in line with article 31 of the Constitution.
4.2 SWOT Analysis
The Strengths, Weaknesses, Opportunities and Threats (SWOT) framework
analyzes both the internal and external environments of ICT in KRA. The
framework provides a means of determining our strategies for the 3rd ICT
Strategy. Over the plan period, we will leverage on our strengths to take
advantage of opportunities, intervene in areas of weaknesses and threats.
Table 1 summarizes the results of the SWOT analysis.
Table 1: Summary of SWOT Analysis Results

Strengths Weaknesses
a) Improved digitization level of business a) Point to point integration of business
processes systems and Data Migration gaps Digital
b) Increased investment on core IT b) Piecemeal enhancements of business Transformation
infrastructure systems due to capacity gaps in in Tax
c) Top Management support to business requirement management Administration
transformation and innovation c) Skills capacity and policies to enable
d) Relative maturity of Service level exploitation of emerging technologies The SWOT
management function d) Discipline in Project portfolio and Framework
e) Adoption of various IT best practices management
frameworks e) Aging IT Infrastructure in the regional
f) Skilled ICT staff to support automation offices
initiatives f) Inadequate capacity to control and
g) The technology savvy millennials are standardize IT environment
becoming the majority in the workplace and g) Negative perceptions on the integrity of
want to be engaged through technology KRA systems
h) Insufficient ICT staff motivation

Opportunities Threats
a) Government Big Four Agenda and a) Potential for cyber-crime and cyber
associated funding to the aligned IT security threats
initiatives b) Dependency and lock-in by 3rd party
b) On-going e-Government projects e.g. service providers
Huduma Centers c) Taxpayers are becoming sophisticated in
c) Devolution and base county IT tax evasion
infrastructure d) Challenges of taxing the flourishing online
d) Government integration to IFIMIS traders
e) Readily available local ICT talent e) High levels of technology obsolescence,
f) Widespread adoption of mobile telephony, necessitating frequent investment
data services and fiber connectivity f) Lack of supportive legislative provisions to
ICT STRATEGY 2018 – 2021

g) The existence of electronic waste (e-waste) support usage of emerging technologies

recyclers provides KRA with an opportunity g) The recent Government circular
to partner with them to dispose e-waste requiring that ICTA centralizes all MDA
ICT procurements may slow down
the Authority’s ability to adopt new
technologies and related ICT procurements
h) High cost of software licenses

25
 4.3 Benchmarking
Below are the findings of benchmarking studies:
a) Reporting Level of ICT. The reporting level of the head of ICT is
directly to the CEO. This is in line with the strategic recommendations of
the IMF East AFRITAC Technical Assistance Mission of November 2014,
which recommended that with the critical role of ICT, the head of ICT
in KRA should be at par with the business unit Commissioners. With
ICT role becoming increasingly critical in the Authority, there is need to
provide adequate visibility and appropriate leadership. We shall engage
Management and the KRA Board of Directors in strengthening the
leadership of ICT to the position of Commissioner and reporting directly
to the Commissioner General. This is in line with COBIT5 best practices
and benchmarking reports reviewed
b) Leveraging on Technology. The October 2017 PWC and Microsoft
reports (https://www.pwc.nl/nl/assets/documents/pwc-digital-
transformation-tax-oct2017.pdf) on digital transformation for tax
administration identify the following as critical technologies for digital
transformation: big data analytics, artificial intelligence, machine
Digital learning, internet of things, mobility and cloud computing. For cloud
Transformation computing, in line with the General Data Protection Regulation (GDPR)
in Tax
Administration (EU) 2016/679 and ICTA cloud adoption guidelines, there is consensus
that it is against these standards to store citizen data on public cloud.
Benchmarking Therefore, there is need for robust policy on emerging technologies
findings
utilization. For cloud computing, KRA will invest on private cloud for
storage of citizen data, while application and selected transaction
data will be integrated to the public cloud based on approved risk
assessment outcomes.
c) Customer Centricity. One of the guiding principles for the New
Zealand ICT Strategy (https://www.ict.govt.nz/Strategy-and-action-plan/
Strategy/) is that customer insights must inform service design and
delivery. Customers should be shielded from the internal complexities of
government. In addition, the October 2017 PWC and Microsoft report on
digital transformation for tax administration argues for taxpayer-centric
solution, with personalized, simple, consistent, intuitive and real-time
delivery of services that will build a 360° view of a taxpayer. On this
basis, the strategy will develop a strategic pillar on user experience to
exploit the benefits that come with customer centricity.
d) In-house Applications Development. The benchmark study shows
that RAs “mission critical” systems are developed in-house. This
ICT STRATEGY 2018 – 2021

approach reduces the cost of software maintenance. KRA will develop

internal capacity to develop and maintain its applications in-house
e) Role of Consultants. Further benchmark study show that RAs are
outsourcing consultants for specific short and managed engagement
to complement internal staff capacity especially in developing systems.
KRA will explore and engage consultants with the required skills to
complement its internal capacity.

26
f) Innovation. RAs (Swedish, Uganda, South Africa) have an ICT R&D
and innovation team that co-ordinates innovation in the RAs, but actual
innovation is open to all staff because they are in a better position to
understand their pain areas and seek for ways to improve on them. As
(Swedish, Uganda and South Africa) have an ICT R&D and innovation team
that co-ordinates innovation in the RAs, but actual innovation is open to all
staff because they are in a better position to understand their pain areas
and seek for ways to improve on them.
4.4 Confrontation Framework
We will use the Confrontation ‘Matrix’ framework in the SWOT to identify the
issues that we can leverage on to overcome our weaknesses and respond
to the external environment. The confrontation framework will assist us
identify how to leverage on our existing strengths to take advantage of
opportunities, overcome our weaknesses and minimize impact of threats.
Strengths Weaknesses
(We will use existing strengths to take (We will tackle our weaknesses to
advantage of opportunities) prevent us from missing opportunities)

a) Expansion of our digital platform to a) Implement ICT Strategy to

exploit growing digitisation of the tackle existing business systems Digital
economy weaknesses and exploit increased Transformation
b) Integrate with stakeholder systems to digitisation for tax base expansion in Tax
achieve ‘single’ view of taxpayers and b) Provide rich and relevant information Administration
Opportunities

improve compliance to taxpayers on our KRA website

c) Resource mobilization from and through all the other public Our Confrontation
Development Partners to fund engagement platforms, including Matrix
ICT initiatives media in order to enhance compliance
d) Push KRA services onto mobile and c) Train ICT staff on emerging
online platforms and increase service technologies, platforms and tools in
delivery service touch points to meet order to develop innovative solutions
the increasing demand for accessible, that enhance data driven compliance
reliable and efficient tax services and widen the tax base
from taxpayers d) Strengthen R&D and innovation
e) Develop/support systems in-house to in order to leverage on emerging
minimise the cost of software licenses technologies to provide solutions
from outsourced systems to business
(We will use existing strengths to reduce (We will act on our weaknesses to
probability and impact of threats) mitigate threats)

a) Leverage on automation and a) Implement measures to secure KRA

partnerships to develop an against cyber-attack
e-commerce strategy b) Tackle integrity challenges to
b) Engage the ICT Authority (ICTA) minimise scope for
to minimise negative effects on cash-based businesses
ICT procurement given the recent c) Integrate systems to allow for ‘single’
Government circular requiring that view of taxpayer, improve customer
Threats

ICT STRATEGY 2018 – 2021

ICTA centralises all MDA service and limit scope for evasion
ICT procurements d) Build capacity in new skills and
c) Collaborate with other agencies to specialised technology solutions to
tackle cyber-crime exploit the benefits
d) Use automation to minimise e) Implement an improved Customer
operating costs Service Delivery Model to improve the
quality of ICT services to customers
f) Implement and enforce project
portfolio management and project
management standards to reduce
cost of projects

27
 5. Vision, Mission, Theme
and Core Values
5.1. ICT Vision
The KRA corporate vision is to be a:
A globally trusted revenue agency facilitating tax and customs compliance
The Transformation Vision is to be a:
A Tax Administration offering efficient customer focused tax services based
on data, risk and intelligence by leveraging technology
The ICT vision is:
To be a leader among revenue authorities in the use of smart technology
solutions in tax and customs administrations

5.2. ICT Mission

The KRA corporate mission statement is:
Building Trust through Facilitation so as to foster Compliance with Tax and
People
Perspective Customs Legislation.
The Strategy The ICT mission is:
To develop Smart ICT solutions delivered creatively to offer a unique
business experience to taxpayers

5.3. Theme for 3rd ICT Strategy

In alignment with the business thrust in the 7th Corporate Plan, the
theme for the 3rd ICT Strategy is:
‘Digital Transformation in Tax Administration’

5.4. ICT Core Values

The corporate core values are (TECH):
a) Trustworthy – Employee strives to act in a manner that builds
trust with our stakeholders; is open, transparent and predictable to
customers and always tells the truth.
b) Ethical – The employee lives and acts in ways that are consistent with
ICT STRATEGY 2018 – 2021

good behavior and adheres to a set of principles that stakeholders find

acceptable; his/her words are consistent with action.
c) Competent – The employee integrates his/her knowledge, skills,
abilities and other attributes to perform effectively on the job, do the
right things and deliver services in the right way.
d) Helpful – The employee demonstrates that they are giving or ready
to give help. He/she is simple, available, reachable, accessible and

28
dependable in service.
In addition to embracing the corporate core values, ICT will also be guided
by the following additional core values in order to upscale the value of ICT
to business:

a) Professionalism - Doing the right thing the right way

b) Team-Work - Collaborative effort to achieve common goals
c) Customer-Focus - We listen, we care, we serve
d) Dependability - We do what we say we will do
e) Innovativeness and Agility - Think like there is no box, think smart

Digital
Transformation
in Tax
Administration

Our Core Values

ICT STRATEGY 2018 – 2021

29
 6. Strategic Objectives,
Strategies, Outcomes and
Key Initiatives
The Third ICT Strategy has been developed in alignment with the
Seventh Corporate Plan which is based on the four balanced score card
perspectives; i.e. People, Customer, Business Process and Financial.
Drawing upon the synthesis of the situational analysis and the adopted
confrontational Strategy, the strategic objectives strategies and
outcomes for each perspective are summarized below.

Figure 4: The 3rd ICT Strategy Vision Diagram

KRA Applications/Services

Digital
Transformation
in Tax
Administration

The Strategy
Architecture

6.1. People Perspective

The People perspective refers to the ICT staff. The overarching goal
of the People pillar in the Seventh Strategic Plan is ‘a competent,
performance driven, customer focused and motivated staff’. In the
strategic analysis in Chapter 4, we identified the need to build ICT
ICT STRATEGY 2018 – 2021

staff capacity on technical, managerial and emerging technology skills

including knowledge transfer from vendors.
This Strategy focuses on building staff capacity to drive technology
inventions for business enablement and providing the tools and
capability that enable staff mobility, via telecommuting and virtual
workspaces with a view to enhance KRA attractiveness and staff
productivity.

30
To harness the business value of emerging technologies, in the industry,
firms are creating internal expertise in cyber security, big data analytics,
information management, architecture and standards, supplier and
contract management, and mobile technologies. Therefore, we aim to
revamp ICT skills on these emerging technologies to build a competent and
motivated ICT staff to drive digital transformation for business enablement.
Informed by these strategies, KRA will develop adequate skills in critical
ICT domains in order to provide superior ICT services. The Authority will
ensure that skills and knowledge transfer is impended as deliverable item
during implementation and commissioning of new IT projects.
Tooling to Optimise IT Operations
There is need for ICT Division to have an effective interface to the
business departments/divisions. The 3rd IT strategy is cognizant of the
need for greater responsiveness and collaboration with teleconferences,
knowledge-based platforms, virtual team workplaces, intelligent portals,
internal social media tools and mobile apps, eLearning tools and experts
that can be reached online with communication/ collaboration tools.
We shall invest on self-service, intelligent reporting (report builders,
dashboards, easy connectivity, and improved analysis to maximize
operations. We shall empower staff to work from anywhere and anytime,
People
through implementation of End User Computing Solution based on VDI Perspective
technology, while proving staff with computing tools such as PCs, printers,
mobile iPads as the budget permits. Our goal is to attain 1:1 staff to Our Talent Pipeline
computer ratio.
Performance Measurement
Performance measurement dashboards and reporting present a feasible
way to maintain buy-in, ongoing support from our stakeholders. They also
enhance process transparency and accountability. Effectively measuring
performance involves periodically assessing set KPIs, relevance, progress,
efficiency and the impact of activities with respect to project objectives. The
tangible outcome of monitoring and measuring to help in periodic progress
reports (e.g. semi-annual or annual) to key stakeholders. We shall review
our performance criteria, review KPIs and productivity indices to ensure
our team performance is well articulated
Establish a Talent Pipeline
Finally, the Authority has witnessed an increasing trend of skilled staff
leaving for greener pastures in other organizations particularly once
they have acquired knowledge and experience in IT. The Strategy takes
ICT STRATEGY 2018 – 2021

cognizant of the need to enhance teamwork, improve remunerations,

increase promotions, better skill matching; rationalize workload
distribution and growth for qualified IT personnel. We shall strive to retain
core ICT skills.
There is therefore need for the Authority to adopt HR practices that favour
the organization, such as sourcing and retaining high/expert skills and use
of contract, short-term contracts, supported by an appropriate succession

31
 Strategy to provide a fall back in case of the inevitable exists of key
skills. We shall work with universities with a view to absorb 5-10 top
talent on critical emerging skills on short-term three-year contract
through a rigorous talent search programme. The staff will inbreed new
skills and fill gaps left by exiting and retiring staff. In this respect, the
Authority will pursue the following strategic objectives:
Strategic Objective O1: To recruit, develop and retain competent and motivated
ICT staff
In order to achieve this objective, the Authority will pursue the following
set of strategies and initiatives to achieve the indicated outcomes:
Strategies Initiatives Outputs/Outcomes
S1.1 To recruit, S1.1.1 Implement IT talent pipeline Oc 1.1: 100 new ICT staff
develop and retain programme augmented with a flexi short-term recruited
competent and sourcing strategy for specialized ICT skill-set Oc 1.2: 10 talent absorption
motivated IT Staff to complement existing skills from local public
universities annually

S1.1.2 Train & reskill ICT staff on emerging Oc 1.3: 95% itax and iCMS
technologies, platforms and tools in order support done in-house
to develop/deploy innovative solutions and
support them in-house Oc 1.4: 120 staff trained on
People emerging IT skills
Perspective
S1.1.3 Develop and implement a KPI based Oc 1.5: 100% high/excellent
Teleworking: work performance framework, motivate/reward performers rewarded.
at anytime, from
exemplary performance and establish a
anywhere using any
device reward framework to address the unique ICT
work demands
S1.1.4 Review and revamp ICT Managers’ Oc 1.6: 95% ICT leadership
IT governance, leadership, coaching and score rating
mentorship skills sets

6.2. Business Process Perspective

The Business Process perspective refers to how ICT can be used
to improve the efficiency and effectiveness of internal processes
and add value to business operations. The strategic objective and
the overarching goal of this pillar in the Seventh Strategic Plan is
‘simplification of customer facing services and data intelligence driven
business processes’ in order to achieve ‘data and intelligence driven
organization’.
6.2.1 Business Systems
The 2nd ICT Strategy saw the digitization of the core business and support
ICT STRATEGY 2018 – 2021

department processes, this has played a great role in contributing to tax

revenue growth from Kshs. 224B in 2003 to Kshs. 700 billion in 2012. This
trend has continued over the years to Kshs1.4 Trillion in 2017-18 from
Kshs1.3 Trillion in 2016-17. However, we did not manage to achieve full
integration of internal and external systems to facilitate data matching for
business decisions. The current point-to-point integration has limitations
with respect to flexibility, cost and risks associated with inappropriate
methods for service monitoring. The 3rd ICT Strategy focus is on the

32
flexible integration and optimization of the capabilities of the business
systems invested in for business value realization.
To enable integration/linking of the internal business systems (itax, iCMS,
iSupport) and external systems, allow data matching and use of automated
risk engines in iTax and iCMS for targeted intervention. The Authority shall
implement Enterprise Services Bus with API capabilities, taking advantage
of micro services. As illustrated in Figure 4, The ESB will provide a secure
flexible, application integration platform within the core systems to
empower the business and taxpayer to query their transaction status and
related queries for information sharing with KRA, government and other
stakeholders. An ESB solution will be therefore an internal “Bus” that
allows applications and services to communicate with each other in an
uncoupled fashion. With ESB, all applications can hook into the bus, publish
their message and all interested parties listen and react without directly
connecting with each other.
To enhance integrations with external systems, the Authority will implement
an Application Programming Interfaces (APIs) capability on ESB to allow
consolidation of services across disparate endpoints as if they were all coming
from a single host. Logically, the API Gateway will not be a replacement
or/alternative for an Enterprise Service Bus, but rather an enhancement
of ESB or a means by which the external services in ESB will be designed Business Process
Perspective
and delivered. With regard to APIs, KRA has implemented web services
for communicating with 43 banks and partner government agencies like ‘Towards Data
Driven and
KENTRADE, KPA and the National Treasury. However, integration with other Intelligence Led
players in the private sector is an initiative we are yet to align with KRA security Decision Making’

and related data protection policies associated with it. The weak point in an
API is that they can expose taxpayer data, backend server appliances and to
unauthorized access, putting the Authority at risk. Nevertheless, most API
security risks can be largely mitigated by tools and best practices. In light
of this, KRA shall implement a robust and reliable ESB that provides KRA
agile and secure integrations in a cost effective way. It is expected that the
ESB will provide the integration benefits of standardization, loose coupling,
resilience and high availability, monitoring and intermediation. We shall
engage EOMs in development-customized interfaces (APIs) between KRA
and vendor solution that will specifically facilitate tax filing and payments.
With advanced uptake of mobile phones in the country, we shall push key
taxpayer services to the mobile and related platforms to ensure taxpayers
and other end users are able to track their services via workflow system
without physically visiting KRA premises. Our strategy is to have integrated
ICT STRATEGY 2018 – 2021

inward-looking (internal end-users) and outside looking (external users)

mobile solutions. We shall also build systems with thin infrastructure
footprints such as mobile versions or mobile apps to enhance accessibility
in areas with weak infrastructure bandwidth.

Strategic Outsourcing
KRA at the moment outsources the following infrastructure-related services:

33
 wide area network (WAN) services, internet services, maintenance services
for commercial backup power and security appliances. The Authority
should take advantage of outsourcing opportunities to outsource more in
areas where skills lack internally or identified non-core IT services that
can be effectively done by others. Consequently, we shall adopt a flex-
outsourcing model driven by need, and thoughtful evaluation on all our
five IT artifacts (People/humanware, Hardware, Software/applications,
Networks, and IT content). For Applications Development and Maintenance
Strategy, we shall adopt a mix of both in-house and outsourced models as
summarized below:
a) Outsource development depending on the type of application needed,
complexity, urgency and the skills required. In areas where skills lack
internally, it is prudent to outsource.
b) Maintenance of large systems to be preferably managed internally.
This however will be considered on a case by case basis, informed
by the cost benefit analysis, skills required and availability of source
code. We shall outsource maintenance only when requisite skills and
competencies cannot be obtained internally, or if the source code is not
available due to IPR considerations.
Digital
Transformation c) Less complex systems and where KRA has the skills and competencies,
in Tax
Administration it is best to develop applications in-house due to the vast business
knowledge and a good understanding of the business requirements
‘Towards Data Driven and better control. This will also reduce the total cost of ownership of
and Intelligence Led
Decision Making’ these systems.
A Modern Software Development Center and Ideation Hub
Deliberate effort will be made to ensure that major applications are
maintained in-house to optimize on IT cost. In this regard, we shall
maintain, support and enhance core business systems internally. This
means we shall build a modern application development center that will
also incorporate an innovation hub. The SDC will facilitate integrations
and APIs, Mobile applications, big data analytics and risk-profiling
solutions, AI, block chain and Machine Learning, enterprise wide system
architecture and digital tax collection service which include electronic
payment systems.
6.2.2 Information Infrastructure and Business Enablement
Enterprise information infrastructure is driven by the need to shift
emphasis from ‘operational’ business activities to ‘compliance’ activities,
based on risk analysis and intelligence-led decision-making.
ICT STRATEGY 2018 – 2021

The focus of the business in the 7th Corporate Plan and the Transformation
Agenda is towards intelligence driven compliance. Essentially, we aim to
be more proactive in our response to data received, relating data from
multiple sources, to anomalies automatically detected by our systems.
In this strategy, we envision to have citizen-centric systems that integrate
information from multiple sources and enable personalized services with

34
AI (chatbot assistants) over lower value repetitive and time-consuming tasks,
so staff can focus on value-add services. An automated, integrated system
is expected to address these expectations by reducing manual inputs and
minimizing the risk of errors by checking for discrepancies in real-time and
immediately correcting them.
The Authority shall integrate with key information sources, which include;
land data, business registration systems, mobile data (Mpesa and mobile
telephone registration details), Business Registration Service (BRS),
Ministry of Land system (LMIS), and National Securities Exchange (NSE),
Central Depository Systems (CDS). The authority shall also FastTrack the
implementation of the LIMS/iTax, County integrated Revenue systems. The
Authority will therefore identify and implement suitable technology solutions
to interrogate both structured and unstructured data from different sources.
We shall, FastTrack the implementation of data warehouse & business
intelligence (DWBI) with Risk Module & BI capabilities and explore use of
data lake concept for business enablement in this initiative.

Big Data Analytics Business

Perspective
We envision that with almost 90% of digitization done, advanced analytics Security
that build predictive and cognitive modelling for taxpayer segmentation and
risk analysis will be the new frontier for the Authority. The success of these Simple at the front,
complex at the back
integrations will provide an avenue for enriched data analysis around the
taxpayer economic activities as well as improve on tax compliance. We shall
expand our digital platform to exploit growing digitization of the economy by
investing on web crawling tools. This will significantly enhance agility and
capability of business to expand the tax base, detect and deter possible tax
evasion.
The current knowledge management (KM) capabilities are confined to
information and document storage/search. Our KM strategies have to
evolve to encompass all structured and unstructured information across
the Authority, and in the long term become a key organizational driver.
Technically, this will need consideration of better knowledge management
capabilities.
In respect of both business systems (6.2.1) and information infrastructure
and business enablement (6.2.2), the Authority will pursue the following
strategic objective
ICT STRATEGY 2018 – 2021

35
 Strategic Objective O2: To enhance existing business systems to offer
integrated, simple and cost-effective services
In order to achieve the above objective, the Authority will pursue
the following set of strategies and initiatives to realize the indicated
outcomes:
Strategy Initiative Outputs/Outcomes
S2.1 Consolidation S2.1.1. Implement Enterprise Service Oc 2.2.1: 100%
and integration of Bus (ESB) and Application Programming business data
business systems Interfaces (APIs) to enable internal & consolidated and
external integrations) for TBE and business 25 integrations via
decision making. Enterprise Service Bus
S2.2 Enhance S2.2.1 Support ongoing process automation Oc 2.2.1: 99%
business systems initiatives (iCMS, GIS, IGS, TIMS, iCare, automation
to be more efficient LMS, Intelligence Gathering System, level achieved
and effective iSupport, iLaw, DWBI with Risk Module & BI
capabilities, data lake, Integrated scanner
solution, content management solution)
for enhanced digitization of KRA business
processes
S2.2.2. Implement & innovate business Oc2.2.2 innovative
systems with; Mobile, GIS, Big Data solutions implemented
Digital analytics (including e–commerce), artificial for tax base expansion
Transformation Intelligence(AI), PG and block chain
in Tax technologies
Administration
S2.2.3 Implement KRA mobile App to push Oc 2.2.3: 100%
services onto mobile and online platforms implementation of KRA
‘Towards Data Driven
and Intelligence Led and increase service delivery service touch mobile APP
Decision Making’ points
S2.2.4 Continue to enhance and upgrade Oc 2.2.4 100%
the existing Knowledge Management rollout of the
capabilities through skills and knowledge KRA-wide knowledge
transfer on automation projects management hub
S2.2.5. Develop and implement an Oc 2.2.5: 100%
Integrated County Revenue System developed system with
at least 50% of the
counties using
the system
S2.2.6 Implement personal Assistant/Online Oc 2.2.6: 1 Personal
Help to enhance user experience with Assistant and 1 system
KRA systems online help deployed
S2.2.7 Implement a data migration Strategy Oc 2.2.7: Retire 17
and Decommission/Retire Obsolete obsolete systems
Systems to reduce cost and
risk vulnerability
S2.3 Improve S2.3.1. Build capacity for Requirement Oc 2.3: 20 Business
application Centre of excellence to enhance quality Analysts certified
ICT STRATEGY 2018 – 2021

management of automation
capability
S2.3.2 Develop/support systems in-house Oc 2.5: 100%
to minimize the cost of Annual maintenance of core systems
costs from outsourced systems maintained and
enhanced internally
S3.3.3 Build a modern Application Oc 2.5: 100%
Development center with an ideation hub commissioning of the
SEC and IH

36
6.2.3 ICT Infrastructure
The increased automation of business process has an effect of putting heavy
reliance by the Authority on the ICT platform. The need for stable and reliable
infrastructure platform to guarantee the systems/service availability is critical
to our success. Further, the demand for tax base expansion and opening of
new offices in counties demands a robust connectivity, stable Internet and
reliable power backup solution. Currently, some of the core infrastructure
components are obsolete to guarantee required uptime. We shall complete the
implementation of our state-of-the art primary data centre, upgrade our power
backups, core infrastructure components and refurbish the secondary Data
Centre. The secondary Data Centre/DR (Disaster Recovery Site) will be used as
an alternate site for real-time backup and system recovery. We shall also explore
colocation options the 2nd DR site option. Therefore, we shall upgrade Existing
Infrastructure, extend connectivity to new KRA stations/County Offices exploiting
containerisation- Cloud, virtual desktop, Bring Your Own device (BYOx), and build
secondary data centre with real time replication to RPO and RTO that support
KRA business continuity and availability needs. This will guarantee the Authority
99.9percentage availability and the desired recovery point objectives (RPO) and
recovery time objectives (RTO) emphases in the corporate business continuity
plans.

Cloud Computing Infrastructure

Business
With cloud computing services becoming increasingly mature, we shall use Perspective
internal KRA cloud as well as public cloud where applicable and depending on the
risk analysis. In view of the international and pending local laws, we shall host Unlocking the Data
personal information in a private cloud. This will enable the Authority provide the
required level of data protection and at the same time enjoy the benefits that may
accrue in the use public. We shall use virtualization and provision of Infrastructure
as a Service (IaaS) solutions from the New Data Centre and adopt the best
practices/standards on ICT environment management to transit KRA to a 3rd IT
infrastructure platform.
Evolving IT Infrastructure
ICT STRATEGY 2018 – 2021

For cargo management coordination, we shall acquire requisite bandwidth and

storage to store, process and scanner. We shall also implement containerization
cloud with a view to efficiently virtualize our storage and computing environment.

37
 6.2.4 Information Systems Risk Management
ICT security risks have become a major challenge globally. Firstly, there is need
to address the key sources of risks through eliminating multiple user accounts
by creating a single view of users; increasing enforcement and awareness of ICT
policy and standards; and implementing effective application controls during
systems design. Secondly, there is need to continuously improve the positive
perception of the integrity of ICT personnel by ensuring adequate risk assessment
in ICT processes and adherence to Enterprise Risk Management (ERM).
We shall have a holistic approach to managing Cyber Risk that proceeds from a
Top-Management overview of the enterprise and its multilayered risk landscape as
illustrated below:

Outcomes:
Assets. Clearly Defined critical assets
Controls. Differentiated controls to balance
security with agility
Processes. State of the art Cybersecurity
Processes focused on effective responses
Organisation. Right skills, efficient decision
making and effective enterprise
Business wide cooperation
Perspective
Governance. Investment in operational
Towards an resilience
integrated security Third Parties. Coverage of the whole value
monitoring chain, including 3rd Party services

Cyber-Crime Resilience
We shall implement 360-degree view of the Authority’s information
security posture. Consequently, we shall review all ICT systems security
requirements, improve on existing access and identity management,
implement a unified and integrated security solution and collaborate
with industry experts and agencies on ICT security matters. The
authority shall continue to implement PKI technology for sensitive
applications/functions, track biometrics, smart cards and similar
technologies to enhance security of our assets. To address data loss
in particular the USB security issue, we shall incorporate appropriate
new rules in our IT usage policies and guidelines for staff. The threat
of unauthorized access to external facing KRA services has increased
due to widespread Internet access. Users tend to use easy to remember
passwords that create significant security risk. Business managers and
ICT STRATEGY 2018 – 2021

mobile teams are requesting network access via various devices. We

shall seek to simplify user access to the systems while exploring other
secure access solutions to manage the risk. This will also include the
Security Operation Centre (SOC) role.
In respect of ICT infrastructure (6.2.3) and information systems risk
management (6.2.4), the Authority will pursue the following strategic
objective:

38
Strategic Objective O3: To enhance business systems security, reliability,
availability and business continuity
In order to achieve the above objective, the Authority will pursue the
following set of strategies and initiatives to achieve the outcomes shown

Strategies Initiatives Outputs/Outcomes

S3.1 Upgrade ICT S3.1.1. Upgrade and extend existing IT Oc 3.1: 100%
infrastructure infrastructure - (including: power backup, Alternate availability of
Data Centre/DR site, VOIP, private Cloud, LAN/ service to all KRA
WAN, data protection & provide universal Wi-Fi footprints
access to identified sites) to enhance availability
and continuity of business systems
S3.1.2 Implement Desktop as a Service (DAAS) Oc 3.1.2: Ratio 1:1
including centralised computing infrastructure to access to end-user
enhance management of IT services and increase computing device
staff to computer ratio
S3.2 Enhance S3.2.1 Attain and maintain ISO 27001 certification, Oc 3.2.1.1: ISO
information acquire external security assurance and collaborate 27001 certification
systems’ security with industry experts on cyber security to mitigate attained
and mitigate cyber IT risks and exposure to cyber security Oc 3.2.1.2: 80% IT
threats security perception
rating score
S3.2.2 Build capacity in cyber surveillance to Oc 3.2.2: 20 trained Customer
support and maintain the Cyber Command Centre/ staff on cyber Perspective
Security Operation Centre (SOC) and digital forensic surveillance
laboratory for improved cyber surveillance Reducing the
gap between the
S3.2.3. Implement single sign on, Web Application Oc 3.2.3: 3600 customer and ICT
Firewall (WAF) and Identity Access tools to enhance degree ICT security
secure and ease system access posture

6.2.5.1 Customer Perspective

Our internal customers are mainly comprised of business departments.
Therefore, this perspective concentrates with how best ICT will provide
services to the business. The overarching goal of the Customer pillar
in the Seventh Corporate Plan is to ‘achieve a quantum leap in customer
service’. Chapter four of the 7th Corporate Plan, it is noted that the
customer expects better services that are already being offered by ICT. In
this regard, ICT will improve its services to meet customers’ expectations.
Enhanced User Experience
To enhance user experience, we shall leverage on emerging technology to
provide a platform to engage taxpayers. In order to provide a single view
ICT STRATEGY 2018 – 2021

of taxpayer, we shall integrate existing systems, and reengineer existing

business system to cater for persons with different abilities. We shall build
light applications leveraging on mobile USSD and Apps targeting specific
sectors to simplify filing and compliance experience.
In line with the overarching goal in the Seventh Corporate Plan and in order
to deal with above challenges or needs in the Customer perspective, ICT
will pursue the following strategic objective:

39
 Strategic Objective O4: To provide a simple, accessible, standardised and
well-coordinated customer service
In order to achieve the above objective, the Authority will pursue the
following set of strategies and initiatives and achieve the outcomes
indicated:
Strategies Initiatives Outputs/Outcomes
S4.1: Enhance S4.1.1. Re-design IT Service Oc 4.1: 100%
User Experience Delivery with IT presence in the deployment of IT
and IT service regions to enhance response support staff (IT
delivery time and efficient utilisation of presence) to all KRA
IT services in outstations regional offices

S4.1.2 Upscale/enforce SLA Oc 4.2: 95% IT

management process to meet response Time rating
the business expectation on to SLA commitments
IT services
Oc 4.3: 80% ICT user
satisfaction rating
S4.1.3. Partner with KESRA to Oc 4.4: 70% IT literacy
Digital impart relevant IT skills rating
Transformation to users
in Tax
Administration S4.1.4 Revamp IT Innovation: Oc 4.5: 6 IT
R&D functions leverage on innovations and
‘Towards Data Driven emerging technologies to 2 IT industry
and Intelligence Led innovate ICT products and collaborations
Decision Making’ services to fill
customer-needs gap.
S4.1.5. Implement audio assistance for Oc 4.6: 1 system with
PWD Audio assistant
for PWDs

S4.1.6. Implement sector specific light Oc 4.6: 2 USSD/

mobile apps/USSDs mobile apps targeting
specific sectors

6.2.6 Financial Perspective

This perspective, which the Corporate Plan refers to as Revenue, aims to
achieve ‘enhanced revenue through improved compliance’. This Strategy
will focus on optimizing the IT cost while ensuring that technology
standard and quality of services is not impacted. We shall take measures
to enhance revenue and/or reduce the cost of ICT by taking measures in
ICT STRATEGY 2018 – 2021

ICT project management and IT governance as explained below:

40
6.2.6.1 ICT Projects Management
e-Project Management
ICT project management is critical to the success of KRA automation
initiatives. In order for the project management framework i.e., project
management procedures, project discipline in planning, prioritization
and selection of ICT projects, & projects closures to be effectively
enforced, there is need for improvement. Figure 5 shows project portfolio
management proposed.

Stakeholder Engagements
Corporate Plan
Business Architecture
ICT Expert Opinion
Benefits Realisation (ROI &
Business Value)

Financial
Perspective
Implementation by KRA ICT
Division and Contracted Optimization and
Service Providers standardization of
ICT Projects

During the Strategy period, we shall facilitate a corporate and

departmental mechanism for vetting and accepting ICT projects, skills and
knowledge transfer from vendors, with adequate projects documentation
while interfacing with stakeholders. There is also need for coordination
of project based Change Control Committees (CCC) and Change Advisory
Committee (CAC).
Best-Fit Solutions
In implementing the Strategy, the Authority shall adopt project
implementation best practices. This will require transition from the
traditional waterfall model to an agile project execution approach of
prioritizing project products and subjecting them to requirements, design,
integration, testing and deployment one at a time and making decisions
based on realities during execution. Equally, development of project
management skills, practices and standards will be given high attention at
ICT STRATEGY 2018 – 2021

the Corporate Level

6.2.6.2 ICT Governance
With the increasing business expectations and the need to get ahead
of the curve in order to assure business value, in the spirit of ‘IT as a
Business Enabler’, one of KRA’s goals is to embrace and institutionalize
IT as a Service (ITaaS) model. We shall make working with and within ICT
Department enjoyable by transforming and redefining the ICT function to

41
 bridge the gap between business and ICT, and to improve ICT operations.
In business systems management, we shall enhance and efficiently
deliver ICT services, while creating convergence of ICT staff and
leveraging on outsourcing of services as necessary. To manage the total
cost of ownership, we shall negotiate favorable annual maintenance
costs at tender level, and shift from outsourcing applications
development to a combination of outsourcing and in-house software
development. Figure 6 show technology adoption Strategy.

OEMs/Delivery
Partners
Finacial
Perspective
Well Managed TCO

Other opportunities for reducing cost and/or enhancing revenue include

effective utilization of redundant links to reduce idle and costly capacity,
exploring green alternatives for power to reduce power bills, leveraging
on national optic Fibre backbone infrastructure to provide connectivity
in KRA regional offices, pursuing development partner funding of some
of the ICT initiatives, and consolidating/integrating and completing on-
going ICT security projects.
In line with the Seventh Corporate Plan and in order to deal with above
challenges or needs in the Financial perspective, KRA will pursue the
following strategic objective:
ICT STRATEGY 2018 – 2021

42
Strategic Objective O5: To optimise the cost of ICT operations
In order to achieve this objective, the Authority will pursue the following set
of strategies and initiatives and achieve the outcomes shown:

Strategies Initiatives Outputs/Outcomes

S5.1: Manage S5.1.1: Partner with Manufacturers Oc 5.1: 50% of all licensing
the cost of ICT (OEMs), negotiating volume to be contracted to OEMs
operations discounts & manage the project
delivery costs

S5.1.2: Consolidate ICT Oc 5.2: 75% Infrastructure

infrastructure to reduce the consolidated, 100%
costs of licensing and AMC and allocated notional costing
introduce notional costing for IT
services

S5.1.3: Utilise shared government Oc 5.3: 2 systems hosted in

infrastructure by leveraging on shared infrastructure
existing ICT infrastructure (e.g.
Government Cloud, PKI, government
bulk licensing and volume discounts
from OEMs)
S5.2 Develop S5.2.1: Develop and implement Oc 5.4: 100% Financial
and implement ICT investments policy (reduce implementation of the policy Perspective
an ICT project duplications, increase ROI/
and portfolio benefits, etc.) Optimized overall IT
management Spend
strategy S5.2.2: Introduce project M&E Oc 5.4: Quarterly reporting
function to monitor compliance on all projects

S5.3: Improve IT S5.3.1: Acquire the services an IT Oc 5.5: Contract and

governance and advisor on IT projects & onboard an ICT expert
upscale value investment oversight
created from IT S5.3.2: Improve IT process Oc 5.6: Attain 3.5 ICT
investments maturity rating maturity score

S5.3.3: Benchmark on IT financial Oc 5.6: Attain 3.5 ICT

management with other Revenue maturity score
Authorities (RAs), Private Sector, ICTA
and OEMs and implement ICT
best practices
S5.3.4: Lobby with government Oc 5.3.1: 100% engagement
through MOICT, CA and ICTA for of MOICT/ICTA/CA
appropriate legislation and policies
ICT STRATEGY 2018 – 2021

to enhance utilisation of emerging

technologies and harnessing big data
gains for revenue collection

43
 7. Strategy Implementation
7.1. Implementation Plan
An excellent Strategy will not deliver expected results if it is not
successfully implemented. The implementation plan for this Strategy
is shown in Annex 1. It shows the outcomes, performance indicators
for each outcome, targets to be achieved over the plan period, the
key initiatives and the offices responsible for achieving the plan. The
Division will develop annual work plans, derived from the three-year
implementation plan.
7.2. Alignment with Other Internal Components
Successful Strategy implementation requires congruence or alignment
with the various other internal components of the division. Key among
these are structure, budget, systems, leadership, staff (their skills,
attitudes and behavior) and shared values.
7.2.1 Budget Alignment
It will be important to maintain an alignment between the annual
budget and the annual ICT work plan developed from the three-year ICT
Digital Strategy. Annual work plans should be completed in time to inform the
Transformation relevant annual budgets.
in Tax
Administration 7.2.2 Structure Alignment
The Strategy M & E The structure of IT support lacks integration mechanisms, with different
units working in silos. An integrated mechanism that coordinates the
various units in the Division so that they can work together to support
and facilitate business and achieve goals is proposed. Thus there is
need to review the current structure and include such integration
mechanisms, for instance account managers for specific business
departments/divisions who coordinate the various ICT units to provide
customer centric services to business.
ICT’s reporting level is not commensurate with its strategic role in the
Authority. In all similar benchmarked organizations reviewed, ICT is
at the same level as revenue departments and reports to the CEO. It
is therefore recommended that the ICT structure is reviewed to align
to past recommendations and to best practice. By elevating ICT to
be headed by a Commissioner, ICT will more effectively interact with
business and play the strategic role that ICT is supposed to play in the
Authority as an equal partner of business.
The current structure where staff growth is based on managerial
ICT STRATEGY 2018 – 2021

structure needs to change to allow critical technical skills that would be

crucial to exploit ICT and re-position KRA in its primary business. The
recommendation is to implement a technical career path for ICT staff.
In line with the practice in other Revenue Authorities, KRA will
implement framework contracts in order source for specialized skills
from consultants in order to complement existing ICT capacity.
In reviewing the structure of the ICT organizational structure and right
sizing it, the following shall be taken into consideration;

44
a) The ICT staff to total KRA staff ratio will be used as a key measurement/
performance parameter when compared to comparable
tax administrations;
b) Review the existing governance structure for ICT to ensure critical
functions/services are handled at commensurately responsible
positions, while providing room for growth; and
c) Strengthen the Project Management Office (PMO) function to ensure
professional management of ICT projects and get rid of the project
management challenges highlighted earlier.
7.3. Communication of the Strategy
Staff in KRA will be involved in implementing the ICT Strategy. In this
regard all ICT staff will sensitized and involved in the Strategy execution.
This calls for effective mechanisms for communicating the Strategy to all
staff in the Division and all other divisions/departments of the Authority.
7.4. Risk Management Framework
Risk-taking in a Strategy is inevitable as the strategies contained therein
are enablers of change. Change introduces uncertainty, hence risk.
Management of risk is the proactive identification, assessment and
control of risks that may affect the delivery of the Strategy’s objectives.
Bold objectives and attendant strategies are required to ensure risks are Financial
Perspective
managed to minimize their impact, and ensure that the stated objectives
are realized. A key tenet of ISO 27001:2013 or ISO 31000, on which the Our Risk
Management
Authority is certified, is the identification of risk, and delineation of Framework
mitigation measures. Risk management, therefore, is a continuous activity
that must be carried out throughout the life of the Strategy, accounting for
changes in the internal and external environments.
The objectives of risk management are to increase the probability and
positive impactful events occurring while decreasing the negative events.
The team identified a number of risks that are likely to impact the Strategy;

a) First, strategic IT investment push vs budget; therefore the Authority

shall enforce IT investment standards.
b) Secondly, escalating cost of IT, due increased automation, software
license and related annual maintenance costs.
c) Thirdly, exploitation of emerging technologies gaps arising from the
inadequate policy guidelines/legislative provisions; lobby for enactment
of pending ICT bills through ICTA & MOICT.
d) Fourth, information systems security risks that impede the user
ICT STRATEGY 2018 – 2021

experience of the planned customer centric initiatives.

e) Fifth, the dynamics surrounding the project management culture,
leading to low completion rate and delayed value realisation
measurement from IT projects; and
f) Lastly, retention of key skills to drive implementation of envisioned
strategies due to market dynamics and lack of a structured approach to

45
 retain and motivate ICT talents and innovative skills.
To mitigate these risks, the Authority plans to leverage on the corporate
Enterprise Risk Management Framework to profile and mitigate
identified risks.

7.5. Monitoring and Evaluation

Monitoring and evaluation (M&E) helps those involved in executing the
ICT Strategy to assess if progress being made is in line with expectations
of the strategic plan. Monitoring and evaluation of performance
shall be the responsibility of those who are closely involved in the
implementation of the Strategy.
In this regard, the ICT Division Head and identified stakeholders shall
carry out quarterly self-assessment of performance and provide proofs
of compliance. They will be expected to have the capacity to conduct
self-assessment of performance and will be given the responsibility to
undertake performance measurements and reporting. In addition, the
Strategy, Innovation & Project Management and Strategy, Innovation
and Business Perspective Unit in ICT Division will take lead in the role of
monitoring and evaluation
Financial The Division and its constituent units will implement the Strategy
Perspective through performance contracts. The Division will monitor
Projected implementation of the Strategy on a monthly basis, which will be
Investments consolidated to quarterly and annual progress. The agreed performance
indicators and targets at all levels will be used for benchmarking of this
evaluation. The outcome of the annual evaluation will form a basis for
the following year’s plan.

7.6. Budget Implications

Table 6.4 show the total financial implications of the selected key
initiatives for each balanced score card perspective. The cost of each key
initiative is shown in the Implementation Plan (Annex 1).

Tables 2: Budget Implications for Each Perspective

Balanced Score Card Perspective Estimated Budget (KShs m)

1. People 84.0
2. Business Processes 2,554.6
ICT STRATEGY 2018 – 2021

3. Customer 64.0
4. Financial 23.5
Total 2,726.1

46
Digital
Transformation
in Tax
Administration

‘Towards Data Driven

and Intelligence Led
Decision Making’
ICT STRATEGY 2018 – 2021

48
 Digital
Transformation
in Tax
Administration

‘Towards Data
Driven and
Intelligence Led
Decision Making’

ICT STRATEGY 2018 – 2021

49
Digital
Transformation
in Tax
Administration

‘Towards Data Driven

and Intelligence Led
Decision Making’
ICT STRATEGY 2018 – 2021

50