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Originally published by The Standard BusinessNovember 11, 2025
4h ago
Why KRA is chasing importers and small businesses
Kenya Revenue Authority will from January 2026 launch a radical digital crackdown on small traders...
✨ Key Highlights
The Kenya Revenue Authority (KRA) is set to launch a significant digital enforcement initiative from January 2026, targeting tax evaders among small businesses and importers using real-time data from electronic invoices and customs records. This move aims to broaden the tax base and address persistent revenue shortfalls.
- The KRA will validate income and expenses against three digital data streams: TIMS or eTIMS invoices, withholding income tax records, and import declarations.
- The new push will particularly target nil filers—those who declare no taxable income—by cross-referencing their declarations with digital transaction records.
- KRA collected Sh2.257 trillion in the year through June 2025, missing its revised target by Sh47.3 billion, marking the third consecutive annual shortfall.
- Samuel Mwaura, Tax Partner at Grant Thornton Kenya, warned that this aggressive digital approach could lead to an increase in litigations.
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