The Kenya Revenue Authority (KRA) has disclosed that it is stepping up scrutiny of mobile money transactions in a fresh crackdown targeting taxpayers who file nil returns.
The development comes in the wake of growing concerns that some individuals may be underreporting income despite active financial activity on mobile money payment platforms.
Speaking on Wednesday, March 25, during a Creative Engagement on Fiscal Justice with the Youth and Media, FCPA Maurice Oray, Deputy Commissioner in the Policy and Tax Division, revealed that KRA is ramping up efforts to monitor all sources of income after observing a trend among sections of Kenyans who file nil returns.
According to Oray, the monitoring now includes transactions conducted on mobile money platforms, noting that the authority already holds significant financial data on taxpayers and will increasingly use this information to verify 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 inform you of transactions you made, especially through mobile money,” Oray stated.
Under the new approach, KRA will introduce pre-filled tax returns, where known income streams will already be captured in the system.
Taxpayers will then be required to confirm whether the information is accurate or provide an explanation if they dispute the figures indicated.
“If you agree with the pre-filled data, the process moves forward seamlessly. But if you say no, you must justify the discrepancy,” he added, pointing to tighter compliance measures for individuals declaring zero income despite recorded transactions.
Oray further disclosed that starting this year, KRA intends to track all income streams more comprehensively as part of wider reforms aimed at simplifying tax filing while enhancing accountability and reducing tax evasion.
This also comes at a time when the taxman had initially closed the nil payment option to validate and realign its systems.
The Deputy Commissioner also encouraged the public to file their returns in time and dismissed concerns that the nil returns option is not functional.
“We are not stopping you from filing nil returns, but we will flag transactions you have made, especially via mobile money,” he said.
