The Government of Kenya has started the search for an online platform that will process all public tenders and link them to the Kenya Revenue Authority (KRA) in a policy shift aimed at enhancing transparency and nabbing tax cheats.
The move is expected to step up the much-needed analysis of companies’ financial dealings, especially firms doing business with the national government and counties, to unearth tax cheats by matching their payments and income declared to the authority.
The government has now invited foreign and local firms to bid for the installation of the e-procurement system.
“The National Treasury invites sealed tenders from eligible candidates for the design, development, customization, supply, installation and maintenance of an electronic government procurement (e-Gp) system for the Government of Kenya,”said Treasury in a public notice.
The e-procurement system is expected to be linked to the KRA, Integrated Financial Management Information System (IFMIS), Registrar of Companies and the National Council for Persons with Disability for faster verification and flagging of corrupt dealings.
Similar to Uganda Revenue Authority (URA)’s recently introduced Electronic Fiscal Receipting and Invoicing Solution (EFRIS), the system is expected to tackle tax evasion by county and state suppliers which are commonly done through fraudulent invoices to inflate cost in a bid to cut duty obligations and failure to submit taxes withheld from the suppliers and employees.
The emergence of the e-procurement system will end the current tendering system which relies on a lot of paperwork and has cost billions in tax evasion.