KRA Flags Over 392,000 Firms and Individuals in Sh759 Billion Tax Evasion Crackdown

The Kenya Revenue Authority (KRA) has uncovered widespread tax non-compliance involving hundreds of thousands of Kenyan companies, traders, and high-net-worth individuals, with unpaid tax obligations now standing at an estimated KSh759.7 billion.

According to findings from a recent withholding tax audit, at least 392,162 taxpayers were flagged after inconsistencies emerged between the income they declared and figures submitted by third-party entities that paid for their services. The audit revealed that many businesses and individuals significantly underreported their earnings.

In some cases, KRA noted that certain taxpayers filed nil returns, even though records from their business partners showed they had received payments during the same period.

Following the discovery, KRA enforcement teams have moved in to trace the affected individuals and firms as part of an intensified recovery drive. Those found liable risk facing strict penalties, including freezing of assets, travel restrictions, and deactivation of their KRA PINs, which could disrupt their business operations.