Inside KRA’s Plan To Prevent Tax Evasion

The Kenya Revenue Authority (KRA) has launched a new phase in its campaign against tax evasion, granting itself real time access to the payroll data of civil servants and government suppliers.

The move, enabled through an integration with the government’s Integrated Financial Management Information System (IFMIS), will allow the taxman to monitor salary disbursements, contractor payments, and tax deductions directly as they occur.

Speaking at a press briefing in Nairobi, KRA Commissioner General Humphrey Wattanga said the initiative would tighten compliance, reduce leakages, and enhance revenue collection.

“This is a proactive step towards closing tax loopholes. We are now able to verify withholding taxes, PAYE, and VAT declarations in real time, directly from the source,” said Wattanga.

KRA has identified government suppliers and public servants as significant contributors to under declared taxes.

In some instances, high value contracts have been issued without corresponding tax remittances, especially from firms that disappear after payments are made.

Also read: Number Of Kenyans Waived By KRA Under Tax Amnesty Program

The real time data sharing is expected to complement other digitization efforts, including the rollout of the eTIMS system, which captures real-time invoicing and business transactions.

KRA says these systems will work together to build a complete financial profile of both individuals and companies transacting with the government.

“If you’re earning from the public purse, it’s only right that your tax obligations are met in full,” added Wattanga.