KRA Goes After 390,000 Kenyans Who Have Been Evading Paying Taxes

By Robai Ludenyi

The Kenya Revenue Authority (KRA) has revealed a shocking discovery that shows just how deep tax evasion runs in the country. More than 392,000 taxpayers were caught filing Nil returns even though they were actively earning income and carrying out taxable business transactions. A Nil return is meant for people who did not earn any income during the year. However, KRA says many individuals and businesses have been abusing this option to avoid paying taxes, despite clear evidence that money was flowing through their accounts.

According to the taxman, the affected group includes professionals, freelancers, consultants, landlords, and people working in the growing gig economy such as online traders and digital service providers. Many of them received payments through mobile money platforms, banks, or digital wallets transactions that are now easy for KRA to track using data-matching systems.

The authority says the crackdown is part of a wider effort to seal tax leakages and expand the tax base, especially at a time when the government is under pressure to raise more revenue without overburdening compliant taxpayers. KRA used advanced technology to compare tax returns with data from banks, mobile money operators, employers, and other third parties. This helped them identify people who claimed they earned nothing, yet showed clear signs of business activity and income.

Officials warn that those found guilty could face heavy penalties, interest charges, and possible legal action. Some may also be forced to pay back taxes for several years, depending on how long they have been evading tax. KRA has urged taxpayers to come forward voluntarily and correct their records before enforcement action begins. The authority says honesty now could save offenders from harsher punishment later.

The move sends a strong message that tax evasion whether by small traders or professionals will no longer be ignored. As digital payments continue to grow, hiding income is becoming harder, and the taxman is watching more closely than ever.

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