The Kenya Revenue Authority (KRA) is intensifying its crackdown on businesses making unverified input VAT claims, warning of stricter audits as part of a wider tax compliance drive. The move aims to curb exploitation of systemic loopholes that allow companies to lower their tax obligations.

• Between March and April 2025, approximately 9,000 businesses reported Sh39 billion in input VAT that KRA could not verify.
• The crackdown is led by KRA Chairperson Ndiritu Muriithi.
• KRA has established a special review unit to track suspicious claims and flag suppliers linked to unverifiable VAT transactions, aligning with broader tax digitization reforms.