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OBELL: Empowering MSMEs to uphold compliance, thrive in the formal economy

Tax compliance should not be a barrier to doing business, it should be a seamless part of it

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by GEORGE OBELL

Commentary25 August 2025 - 10:00
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George Obell, acting commissioner, Micro and Small Taxpayers at Kenya Revenue Authority./HANDOUT

Micro, Small and Medium Enterprises are the heartbeat of Kenya’s economy. Their entrepreneurial spirit drives job creation, innovation and inclusive growth. Despite their significant position in the economy, their overall tax contribution remains below potential.

At a recent African Development Bank VAT Digitisation seminar held in Nairobi, experts acknowledged that many MSMEs face unique challenges in meeting their tax obligations, ranging from limited resources to complex administrative processes. To support MSMEs in thriving while contributing fairly to national development, the experts emphasised that tax administrations must rethink their role, not merely as regulators, but as enablers of compliance.

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