URA and KRA Forge Strategic Partnership to Combat Cross-Border Smuggling

The Uganda Revenue Authority (URA) and the Kenya Revenue Authority (KRA) have taken a significant step forward in the fight against cross-border smuggling by signing a Joint Collaboration Framework. This strategic partnership aims to curb illicit trade, tax evasion, and revenue leakages, thereby promoting economic growth and development in both Uganda and Kenya.

A Unified Approach to Tackling Trade-Related Risks

The collaboration was formalized following a high-level meeting between URA’s Commissioner for Tax Investigations, Kugonza Kateeba Denis, and KRA’s Commissioner for Investigations and Enforcement, David Yego, on November 5, 2024, in Nairobi, Kenya. During the meeting, the two commissioners recognized the urgent need for a unified strategy to address the growing challenges of cross-border trade, particularly smuggling and illicit financial flows.

Under the Joint Collaboration Framework, both agencies will adopt a synchronized approach in tackling trade-related risks. This will involve sharing intelligence, conducting joint investigations, and executing coordinated interventions. According to Kateeba, this strategic partnership will enable the two authorities to unlock their full potential, ultimately boosting tax-to-GDP ratios to at least 20%.

Key Benefits of the URA-KRA Partnership

The partnership between URA and KRA is expected to yield multiple benefits for both Uganda and Kenya, including:

Reduced Smuggling and Illicit Trade

Smuggling has long been a major concern for both countries, with Uganda alone estimated to lose between UGX 2 trillion to UGX 6 trillion annually due to illicit financial flows. By working together, URA and KRA will enhance their capacity to detect and prevent smuggling activities, thereby reducing revenue losses and fostering fair trade practices. 

Increased Revenue Collection

Tax evasion and illicit trade significantly undermine government revenue collections. Through intelligence sharing and joint investigations, the two revenue authorities can efficiently combat these vices, resulting in increased revenue for national development. This will help finance essential public services such as healthcare, infrastructure, and education.

Improved Trade Relations

A well-coordinated approach to tackling smuggling and tax evasion will create a more stable and secure trade environment. Strengthened trade relations between Uganda and Kenya will not only enhance cross-border commerce but also promote investor confidence and economic stability within the East African region.

The Future of the URA-KRA Partnership

The signing of the Joint Collaboration Framework marks the beginning of a long-term partnership aimed at reinforcing regulatory compliance and tackling illicit trade. Both URA and KRA are committed to leveraging modern technology, data analytics, and coordinated field operations to achieve their objectives.

By joining forces, Uganda and Kenya stand to benefit immensely from a more secure and transparent trading environment. This partnership signals a strong commitment to regional economic integration and sustainable development, setting a precedent for similar collaborations across the East African Community (EAC).

With enhanced intelligence sharing and joint enforcement measures, URA and KRA are poised to curb revenue leakages, boost economic growth, and strengthen trade relations between the two nations. This alliance underscores the importance of cooperation in addressing cross-border trade challenges and ensuring that both countries reap the full benefits of fair and regulated trade.