In a groundbreaking move set to revolutionize tax administration and border security in Kenya, the Kenya Revenue Authority (KRA) has launched a massive search for a private strategic partner to fully bankroll a comprehensive, decade-long technology transformation. The authority has issued a detailed Request for Proposal (RFP No. KRA/HQS/RFP-013/2025-2026), inviting investors to design, supply, and maintain a cutting-edge tech ecosystem, recovering their investment through milestone payments over an estimated ten-year contract period.
This is not a typical procurement. In a significant departure from conventional funding models, the selected private partner will be required to make the entire upfront capital investment for the ambitious project. This includes financing next-generation hardware, sophisticated software platforms, and expert consultancy services. The investor’s capital, operational and financing costs, plus a reasonable profit margin, will be recouped through negotiated periodic installment payments from KRA spread across the contract’s lifespan.
The project is colossal in scope, divided into three distinct lots, each representing a pillar of KRA’s future operational framework.
Lot 1 forms the digital core: the design, supply, and installation of an “Integrated Enterprise Infrastructure, Information Security and Revenue Management Platform.” This essentially calls for a complete technological central nervous system, likely incorporating AI-driven analytics, big data processing, and a centralized revenue management platform to boost efficiency and combat evasion.
Lot 2 leaps into physical surveillance and security. It covers the provision of Enhanced Non-Intrusive Inspection (NII) systems—like advanced scanners for ports and borders—Unmanned Aerial Vehicles (UAVs or drones), and Marine Patrol Boats. This lot aims to dramatically enhance border control, cargo inspection, and surveillance capabilities with minimal disruption to legitimate trade.
Lot 3 addresses the human and procedural element, seeking consultancy services for Project Management, Business Process Re-Engineering, Change Management, and Stakeholder Management. This recognizes that deploying such transformative technology successfully requires managing the profound organizational change within KRA and among its stakeholders.
The total engagement period for this trio of projects is estimated at ten years, covering implementation, support, and maintenance. Critically, the RFP includes a provision for extension. If the strategic partner has not fully recovered its return on investment by the end of the initial 10-year term, the contract can be extended by mutual agreement. This clause de-risks the investment for the partner, ensuring they have a clear path to profitability on this large-scale bet.
For Kenya, this model allows KRA to acquire a state-of-the-art technological overhaul without a massive immediate fiscal outlay, aligning payments with the delivery and operation of the systems. For the winning bidder, it represents a long-term, high-value partnership with one of East Africa’s most critical revenue agencies. The success of this partnership will be pivotal for Kenya’s economic health, aiming to plug revenue leaks, streamline trade, and foster a more compliant tax environment through 21st-century technology.
The race is now on for global technology firms and investment consortia with the financial muscle and technical expertise to step into this role. The outcome will shape Kenya’s revenue landscape for the next decade and beyond.
