The Kenya Revenue Authority (KRA) is set to expand its tax enforcement efforts by using data from the National Social Security Fund (NSSF) to identify employers and employees who are not complying with Pay As You Earn (PAYE) tax obligations.

The plan, unveiled by Treasury officials on Thursday, forms part of a broader government strategy to increase domestic revenue and reduce Kenya's reliance on borrowing amid mounting public debt.

Appearing before the National Assembly's Public Petitions Committee, Treasury Director General for Public Debt Management Raphael Owino said the government was increasingly relying on data-sharing between public institutions to improve tax compliance.

He told lawmakers that KRA would compare NSSF contribution records with PAYE filings to identify individuals and businesses earning income but failing to remit the required taxes.

"We are working with institutions such as the NSSF, for example, to find out who is contributing to NSSF but is not paying Pay As You Earn (PAYE)," Owino told the committee.

The initiative is expected to help KRA identify inconsistencies between employment records and tax declarations, enabling the authority to widen the tax base without introducing new taxes.

The Treasury also revealed plans to strengthen the collection of rental income tax, an area officials said continues to record low compliance despite the growth of Kenya's property sector.

As part of the strategy, KRA will collaborate with Kenya Power to identify owners of rental properties who may not be declaring or paying tax on their rental income.

"What we are doing is to make sure that now we work with companies such as Kenya Power to make sure that we know the people who own large properties but are not paying the rental income tax," Owino said.

The Treasury official said the government was modernising tax administration by increasing the use of digital systems and institutional data to better reflect the structure of Kenya's economy.

"KRA currently is using very outdated systems that do not capture the economy the way it is. So this is why the agenda of digitisation at KRA is very strong," he added.

The disclosures came as members of the Public Petitions Committee questioned Treasury officials about the country's growing debt burden and the measures being taken to reduce dependence on external and domestic borrowing.

Committee Chairperson Muchangi Karemba raised concerns over rising public debt, citing submissions from youth petitioners and findings from the Controller of Budget indicating that Kenya's borrowing has continued to increase.

In response, Owino acknowledged that debt servicing remains one of the government's biggest fiscal challenges.

He said Kenya's debt levels remain elevated and admitted that the country is not yet in a comfortable financial position because a significant share of public revenue is still being directed towards servicing existing loans.

The proposed use of NSSF and Kenya Power data marks one of the latest efforts by KRA to improve tax compliance through data integration, as the government seeks to raise more revenue from existing taxpayers while reducing pressure to finance expenditure through borrowing.