KRA to Scrutinise Payroll Records, Mobile Transactions in Revenue Drive

The Kenya Revenue Authority (KRA) is stepping up efforts to increase tax collection by examining payroll records, mobile money transactions and other financial data to identify undeclared income and improve tax compliance.

The move is part of a wider government plan to use digital systems to identify taxpayers whose declared income does not match available financial records.

In March 2026, KRA Deputy Commissioner Maurice Oray said the authority would pay closer attention to mobile money transactions, particularly where individuals file nil returns despite evidence of financial activity. The authority said it would use available information to check whether taxpayers were declaring their income correctly.

The scrutiny also extends to businesses that receive payments through mobile money platforms, including M-Pesa PayBill and Till numbers. KRA has warned traders against underreporting sales or switching payment accounts in an attempt to avoid tax obligations.

In April 2026, Business Daily reported that KRA was using transaction records and electronic invoicing information to identify businesses whose reported income did not match their commercial activities. The authority said digital records could help establish links between purchases, sales and declared income.

Payroll records are another important source of information in tax administration. Through employment records and Pay As You Earn (PAYE) returns, KRA can verify whether employers are correctly declaring employees’ salaries and remitting the required taxes.

The authority has also introduced changes requiring income tax returns to be checked against electronic tax invoices, withholding tax records and customs import information. These checks began on January 1, 2026, for returns covering the 2025 year of income.

The changes mean taxpayers and businesses need to maintain accurate financial records and ensure that the information submitted to KRA is correct. Differences between declared income and available records could lead to further questions or tax compliance checks.

Source: https://www.facebook.com/share/p/19kcGv86Wd/

TrendPulseKenya feedback-opera-news-app@opera.com