KRA Cracks Down on Traders Switching Paybill and Till Numbers to Evade Taxes

According to the authority, this practice has become common as business owners try to break consistent transaction records and reduce their visible income trails. Acting Commissioner-General Lilian Nyawanda confirmed that KRA teams have detected widespread cases of such switching during field operations and data reviews across the country.

KRA officials warn that the tactic will no longer protect traders from scrutiny. With the rise of digital payments like M-Pesa, the authority can now more easily connect transaction patterns even when payment channels are changed repeatedly. Compliance officers have flagged the behavior in various sectors, particularly among informal businesses that rely heavily on mobile money for daily sales. The move forms part of broader efforts to bring more of the informal economy into the tax net and ensure fair contribution from all sectors.

The crackdown signals a shift in how KRA pursues tax compliance among smaller enterprises. By analyzing digital footprints from mobile money platforms alongside other records such as eTIMS invoices, the authority aims to build accurate pictures of business activity. Traders found engaging in deliberate evasion could face audits, penalties, back taxes, and other enforcement actions. Officials emphasize that honest businesses have nothing to fear, while urging everyone to maintain proper records and register correctly for tax purposes.

This development comes at a time when KRA is intensifying use of technology to improve revenue collection and close loopholes. Many small business owners and matatu operators, already dealing with rising costs and other regulatory fees, will need to review their payment practices to stay compliant. As the authority continues to strengthen its monitoring systems, experts advise traders to seek professional guidance on proper tax filing and avoid shortcuts that could lead to heavier financial consequences in the long run.

The KRA’s firm stance underscores the government’s determination to expand the tax base responsibly while supporting legitimate economic activities. Businesses are encouraged to embrace transparency in their operations to contribute to national development without unnecessary risks. Further details on specific enforcement measures are expected as the crackdown gains momentum in the coming weeks.