NAIROBI, Kenya — The Kenya Revenue Authority (KRA) is ramping up efforts to crack down on tax evasion, with a specific focus on micro and small businesses.
Acting Commissioner for Micro and Small Taxpayers, George Obell, revealed that the agency is setting up a dedicated team to identify and take action against non-compliant businesses.
In an interview, Obell highlighted that while many small-scale entrepreneurs have registered for Personal Identification Numbers (PINs), a significant number continue to file nil returns despite being operational.
He noted that KRA is enhancing its monitoring strategies to ensure businesses accurately declare their revenues.
“One of the major gaps we have identified is in information tracking. Many transactions occur at different levels, but tax compliance remains low. We are now leveraging data from various sources, including land and motor vehicle ownership, to ensure tax obligations are met,” Obell stated.
KRA’s renewed focus on the informal sector comes as the tax agency seeks to boost revenue collection and expand the tax base.
According to Obell, micro and small businesses currently contribute only 14% of domestic taxes, while medium, large, and government entities account for 86%.
With over 20 million registered PIN holders in Kenya, the agency believes a significant portion of small business owners are either under-declaring their earnings or not filing taxes at all.
The commissioner expressed confidence that enhanced enforcement measures will lead to increased compliance and a more equitable tax system.
