The Kenya Revenue Authority (KRA) is set to introduce pre-filled tax returns for individuals while stepping up scrutiny of mobile money transactions in a renewed push to eliminate tax evasion, particularly among taxpayers who file nil returns despite earning income.

“If you had income, there's almost a 100 percent chance that KRA will already know you earned income," said KRA Deputy Commissioner for the Corporate Tax Policy Division, Maurice Oray.

The initiative, rolled out at the beginning of this year, will see the taxman track multiple income streams and automatically populate returns for taxpayers to review and confirm, shifting the burden from preparing returns to verifying information already compiled by the taxman.

According to Oray, the system is part of broader reforms aimed at simplifying tax filing while enhancing accountability.

“We will file the returns for you. And then we ask you to confirm that it is correct. If you say it is correct, we will not look for you. If you say it's not correct, we will ask you to justify,” Oray explained.

Employer-submitted data

He noted that the system will be particularly seamless for individuals whose earnings come solely from employment. In such cases, KRA will rely on employer-submitted data to pre-fill returns and send them directly to taxpayers’ profiles for confirmation.

If the taxpayer confirms the information is accurate, no further action will be required. However, where an individual neither accepts nor disputes the figures, the authority will assume the pre-filled return has been accepted.

At the same time, KRA has disclosed that it is expanding its monitoring of financial activity, including transactions conducted on mobile money platforms, following concerns that some taxpayers underreport income despite active financial flows.

“As you file nil returns, KRA has information and details about your financial activities. We are not stopping you from filing nil returns, but we will inform you of transactions you made, especially through mobile money,” Oray stated.

“We are not stopping you from filing nil returns, but we will flag transactions you have made, especially via mobile money,” he added.

KRA says it already holds significant financial data on taxpayers and will increasingly use this information—alongside digital tools such as electronic tax invoices and other transaction records—to verify declarations and identify discrepancies between reported income and actual economic activity.

The taxman’s push comes amid growing concern over widespread nil filings, which the authority says undermine tax compliance.

The strategy forms part of a broader effort to widen the tax base, convert non-filers into active taxpayers and strengthen enforcement through data-driven systems.

Oray also encouraged the public to file their returns on time, dismissing concerns that the nil returns option is not functional.

He was spoking on Wednesday, this week, during a public engagement forum on fiscal justice organised by the National Taxpayers Association (NTA), as well as a Creative Engagement on Fiscal Justice with the Youth and Media.

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