KRA to Scrutinize Payroll and Mobile Money After Revenue Gap

The Kenya Revenue Authority (KRA) has announced plans to increase oversight of employers' payroll data and mobile money transactions following a Ksh132.1 billion shortfall in its revenue collection target for the 2025/2026 financial year.

KRA disclosed these new tax enforcement strategies during a meeting with the National Assembly's Departmental Committee on Finance, citing changes in tax policies and disruptions in petroleum imports as contributing factors to the revenue gap.

Despite the shortfall, KRA reported collecting Ksh2.844 trillion, which is 95.6 per cent of its target, marking a 10.6 per cent rise compared to the previous financial year.

To tackle the deficit, KRA intends to focus on employers with substantial tax liabilities and verify payroll records against third-party data to detect inconsistencies and reclaim unpaid taxes.