KRA Targets Till Numbers and Pochi La Biashara in New Plan to Track Undeclared Business Income

The Kenya Revenue Authority (KRA) is planning to use mobile payment records from Till Numbers and Pochi La Biashara accounts to identify businesses suspected of concealing income and failing to meet their tax obligations.

In submissions presented to the National Assembly’s Finance and Planning Committee, the taxman revealed plans to access commercial transaction data and compare it with tax returns filed by business operators.

The proposed measures are intended to identify discrepancies between declared income and financial transactions recorded through mobile payment platforms.

KRA plans to use the information to identify businesses that fail to file tax returns, underreport their earnings or record high credit transactions that are inconsistent with their declared income.

The authority also intends to investigate discrepancies involving electronic Tax Invoice Management System (eTIMS) records and reported returns. According to its submissions, the targeted cases affect 42 per cent of the domestic Value Added Tax (VAT) register.

The initiative forms part of broader efforts to expand the tax base and improve revenue collection as the government faces a significant shortfall in its revenue targets.

KRA collected KSh2.844 trillion in the financial year ending June 2026, falling short of its KSh2.977 trillion target by approximately KSh133 billion.

The revenue authority has also struggled to meet its targets in the current financial year. During the first quarter of 2026/2027, it collected KSh749.678 billion against a target of KSh775.953 billion, leaving a deficit of KSh26.275 billion.

Beyond mobile money transactions, KRA is planning targeted audits of employers suspected of underreporting payroll-related tax obligations.

The authority intends to compare employment records, payroll information and third-party data to identify companies reporting large workforces but remitting little or no Pay As You Earn (PAYE) tax.

It will also examine discrepancies involving Housing Levy deductions to establish whether employers are complying with their statutory obligations.

The payroll compliance exercise has already identified an estimated KSh5.3 billion in potential revenue linked to employers who have failed to remit deductions or meet their obligations.

The proposed measures signal an intensified effort by KRA to use financial and employment data to detect tax evasion, improve compliance and recover revenue owed to the government.

https://www.kenyans.co.ke/news/128968-kra-plans-use-till-numbers-pochi-la-biashara-track-undeclared-income

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