KRA in Talks With Safaricom to Introduce Automatic Tax Invoices for M-Pesa Traders

The Kenya Revenue Authority (KRA) is holding discussions with Safaricom over a proposal that could make it easier for small businesses to generate electronic tax invoices through M-Pesa.

Under the proposed arrangement, Safaricom would generate electronic tax invoices on behalf of merchants receiving payments through M-Pesa Till Numbers and Paybills. The invoices would then be transmitted to KRA through the Electronic Tax Invoice Management System (eTIMS).

A KRA official disclosed the discussions before the National Assembly’s Finance and National Planning Committee on October 27, 2026. The authority indicated that Safaricom had proposed a reverse-invoicing arrangement, with invoices potentially transmitted at the end of each business day.

The proposal is intended to address difficulties faced by small traders who lack the technology or expertise to generate electronic invoices. Some larger companies have also struggled to work with smaller suppliers who cannot provide compliant tax documentation.

Safaricom’s merchant network could make the arrangement significant. The company had approximately 3.1 million M-Pesa merchants by March 2026, including around 2.1 million Pochi la Biashara users and one million Lipa na M-Pesa merchants.

However, the proposal remains at the discussion stage. It has not been announced as a fully implemented system, and further details will be needed before traders can know how it will work.

Separately, KRA says it intends to use financial information linked to merchant Till Numbers and Pochi la Biashara accounts to identify businesses that may be underreporting taxable income.

The development signals a growing connection between mobile money, electronic invoicing and tax compliance in Kenya.

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