The Kenya Revenue Authority (KRA) has warned traders that it is now easier to catch those hiding income using mobile money platforms.
KRA says some small businesses have been switching between different paybill and till numbers to confuse records and avoid paying the right amount of tax.
But Acting Commissioner-General Lilian Nyawanda said the trick is no longer working.
She explained that the tax authority has improved its systems and can now track transactions even when traders change payment numbers.
“Even if you switch tills or paybills, we can still see the transactions because you are doing business with someone,” she said.
At the centre of this is a system known as eTIMS, which requires businesses to issue proper invoices for every sale. This helps create a clear record of both what a trader buys and sells.
KRA says every mobile money payment leaves a trail, since there is always a sender and a receiver. By matching these records, the system can spot gaps where traders underreport their income.
For example, if a business buys stock from a supplier who has declared the sale, but fails to report its own sales, the system will raise a red flag.
The authority has also identified traders who are actively doing business but are not filing tax returns at all.
KRA has started reaching out to such traders, asking them to update their records and comply with tax rules.
Businesses have now been asked to review their tax status and clear any pending payments before April 30, 2026, to avoid penalties.
The taxman says the message is simple it is becoming harder to hide income, and traders should stay on the right side of the law.
