KRA Will Soon Start Monitoring Your M-Pesa Transactions

Kenyans, especially those in the small-medium enterprises (SMEs) should prepare for some tough times ahead as the Kenya Revenue Authority (KRA) plans to go after their M-Pesa transactions.

Most SMEs in Kenya receive their payments via M-Pesa, making it difficult for them to remit taxes to Kenya Revenue Authority.

KRA is under pressure to hit the target of collecting 1.9 trillion shillings, after missing targets on several occasions.

In the past few months, KRA seems to have woken out of slumber and is going after the perceived tax cheats and now wants to have a look at M-Pesa transactions.

Kenya Revenue Authority is also planning to crack a whip on businesses that operate online without physical addresses, a move that is most likely going to net many.

Some of the online companies targeted include Facebook, PayPal, Amazon, and Twitter that earn money from Kenya through adverts and sponsored content but don’t pay taxes.

There was a worry among online users, especially those who sell goods and service via online platforms that KRA was going to come for them.

KRA has neither denied nor accepted the allegations that they are planning on going after Kenyans who sell their products and services via online platforms such as Facebook.

On several occasions, KRA has failed to meet targets with corruption being blamed as the major challenge hindering the agency’s efforts to collect enough revenue.

Already, several officials from KRA have been arrested and arraigned for aiding unscrupulous businessmen to evade paying taxes.

It emerged that KRA losses billions of shillings in taxes due to corrupt officials at Kenyan borders and at the Port of Mombasa where goods are allowed to enter the country without paying taxes.

Some manufacturers have also been blamed for siding with corrupt officials at KRA to avoid paying taxes by lying about their financial records.

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