KRA to begin real time business transaction monitoring starting July 1

Treasury Cabinet Secretary John Mbadi announced that the Kenya Revenue Authority will start monitoring business transactions in real time from July 1, 2026, to improve revenue collection and compliance.

Mbadi made the remarks on Thursday while presenting the 2026/2027 Budget in Parliament. He said the Kenya Revenue Authority will intensify reforms through technology, including expanded electronic invoicing, enhanced point of sale integration, and an eCustoms mobile application.

"In the financial year 2026/2027, KRA will intensify reforms to strengthen revenue mobilisation and improve taxpayer experience through the rollout of integrated digital tax administration and revenue monitoring systems," Mbadi said.

The Cabinet Secretary noted that the Electronic Tax Invoice Management System has already onboarded more than 655,000 taxpayers. He added that the active taxpayer base rose by 82,000 to over 6.6 million by March 2026, aided by artificial intelligence and cargo scanning.

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The Kenya Revenue Authority (KRA) has begun sending notices to businesses to review their tax records and settle any outstanding dues before April 30, 2026, to avoid penalties and interest. The notices stem from unidentified business transactions in the final tax obligations for the 2025 financial year. KRA stresses accurate reflection of declared income and expenses.

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Building on recent compliance notices, the Kenya Revenue Authority (KRA) has deployed a mobile money transaction matching system within eTIMS to detect tax evaders, particularly small traders frequently changing paybill and till numbers. Acting Commissioner-General Lilian Nyawanda highlighted its effectiveness in nationwide operations.

Kenya's National Assembly has called for public submissions on the Finance Bill 2026, which proposes new taxes on mobile phones, imported second-hand clothes and digital assets.

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South African Revenue Service collections hit R2.01-trillion in the 2025/26 financial year, exceeding the R2-trillion mark for the first time. The figure surpassed 2025 budget estimates by almost R25-billion and marks an 8.4% increase from the previous year. Commissioner Edward Kieswetter called it a historic crossing as he bows out.

The Kenyan government has proposed new tax measures on second-hand clothing and mobile phones as part of the Finance Bill 2026. Treasury Cabinet Secretary John Mbadi tabled the bill in Parliament at the end of April.

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Interior Principal Secretary Raymond Omollo announced the government's plan to roll out body cameras for police officers soon to enhance accountability in the National Police Service (NPS). The statement came during a press address on March 25, 2026, as part of wider police reforms.

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