The Uganda Revenue Authority (URA) has joined forces with Kenya’s tax body, Kenya Revenue Authority (KRA), to combat cross-border smuggling. This strategic partnership aims to curb illicit trade and tax evasion, promoting economic growth and development in both countries.
URA’s Commissioner Tax Investigations, Kugonza Kateeba Denis, and KRA’s Commissioner Investigations and Enforcement, David Yego, signed a Joint Collaboration Framework to facilitate this partnership. Under this framework, both agencies will adopt a unified approach to tackle trade-related risks, including smuggling, illicit financial flows, and revenue leakages.
A Unified Approach
According to Kateeba, this framework was born out of a high-level meeting between the two commissioners on November 5, 2024, in Nairobi, Kenya, during which, they agreed on the need for a unified strategy to address cross-border trade challenges.
Intelligence Sharing and Joint Investigations
The partnership will enable the sharing of intelligence and joint investigations to combat cross-border smuggling. This collaborative effort will also involve coordinated interventions between both investigative bodies. According to Denis, this unified approach will help to unlock the full potential of both agencies, generating revenue needed to boost tax-to-GDP ratios to at least 20%.
Benefits for Uganda and Kenya
This partnership is expected to benefit both Uganda and Kenya in several ways some of which include:
Reduced Smuggling
The joint effort will help to reduce cross-border smuggling, which is estimated to cost Uganda between Shs2 trillion to Shs6 trillion in illicit flows per year.
Increased Revenue
By combating tax evasion and illicit trade, both countries can increase revenue collection, promoting economic growth and development.
Improved Trade Relations
The partnership will also help to improve trade relations between Uganda and Kenya, promoting a more stable and secure trading environment.
The partnership between URA and KRA is therefore a significant step forward in the fight against cross-border smuggling.
By working together, both Authorities can share intelligence, conduct joint investigations, and coordinate interventions to combat illicit trade and tax evasion.
This collaboration is expected to benefit both Uganda and Kenya, promoting economic growth, development, and improved trade relations for the two countries.