The Kenya Revenue Authority (KRA) has announced a major shift in tax enforcement, revealing plans to intensify scrutiny of mobile money transactions as part of a crackdown on taxpayers filing nil returns.
The move follows growing concerns that some individuals may be underreporting income despite showing active financial activity on mobile payment platforms.
Taxman Targets Hidden Income
Speaking on March 25 during a fiscal justice forum, FCPA Maurice Oray, Deputy Commissioner in the Policy and Tax Division, said the authority is expanding its monitoring systems to capture all income streams.
He noted that KRA already holds extensive financial data and will increasingly rely on it to verify taxpayer declarations.
“As you file nil returns, KRA has information and details about your financial activities. We are not stopping you from filing nil returns, but we will flag transactions you made, especially through mobile money,” Oray said.
Pre-Filled Returns Introduced
Under the new system, KRA will roll out pre-filled tax returns, where known income sources are automatically populated in the filing system.
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Taxpayers will then be required to confirm the accuracy of the information or explain any discrepancies.
“If you agree with the pre-filled data, the process moves forward seamlessly. But if you say no, you must justify the difference,” Oray explained.
Push for Compliance
The reforms form part of broader efforts by KRA to simplify tax filing while tightening compliance and reducing tax evasion.
Officials say the authority will now track income more comprehensively, particularly for individuals declaring zero income despite evidence of financial transactions.
The development also comes after KRA temporarily suspended the nil returns option to validate and realign its systems.
Public Urged to File Returns
Despite the stricter measures, KRA has reassured taxpayers that filing nil returns remains an option, urging compliance within the set deadlines.
“We are not stopping you from filing nil returns, but we will flag transactions you have made, especially via mobile money,” Oray reiterated.
