KRA cracks down on firms over fake VAT claims
NAIROBI, Kenya, Oct 25 - The Kenya Revenue Authority (KRA) has warned businesses that claim input VAT without proper proof of payment, saying such firms Kenya breaking news | Kenya news today |..
✨ Key Highlights
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.
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Kenya Enacts New Air Travel Levy, Orders Tea Factory Loan Audit, & Cracks Down on VAT Claims - October 2025
International and domestic air travelers in Kenya will face increased air passenger service charges following the enactment of the Air Passenger Service Charge (Amendment) Act, 2025, which was signed into law by President William Ruto on October 15, 2025. In a separate directive, the Ministry of Agriculture and Livestock Development has ordered the Tea Board of Kenya to conduct a comprehensive audit of loans taken by factories managed by the Kenya Tea Development Agency (KTDA). Additionally, the Kenya Revenue Authority (KRA) is intensifying its crackdown on businesses making unverified input VAT claims. The KRA is warning of stricter audits as part of a wider tax compliance drive. This move aims to curb the exploitation of systemic loopholes that allow companies to lower their tax obligations.
