“We Have Now Spotted You”; KRA Unleashes New Digital System to Hunt Down Tax Evaders as Treasury Targets 492,000 Hidden Earners

Kenya has taken a bold step to end tax evasion. The Kenya Revenue Authority has rolled out a new digital tax system. The goal is simple. Find people who should pay taxes but do not. The system is already running on a pilot basis. Early results look promising.

Treasury Cabinet Secretary John Mbadi confirmed the rollout. He spoke on Ramogi TV on Tuesday night. He said the system has already mapped more than 492,000 people. These people earn money. Yet they pay no tax. “We have now spotted you,” Mbadi said. He added that the government will no longer guess who is not paying. The data now shows everything.

The new platform links income, property, and financial records. It tracks money in real time. It then matches it to tax returns. This allows KRA to see gaps. It also helps spot false declarations. As a result, many tax evaders will soon receive notices.

The system will also focus on rental income. This is a big leak in government revenue. Landlords are required to pay seven percent of their gross rent. Yet many do not. Mbadi said the country should collect about Sh82 billion from this tax each year. However, KRA has only been collecting around Sh17 billion. That is only a small share of the target.

With the new technology, that will change. The system links rental payments to landlords. It also checks bank flows. This makes hiding income harder. It also makes enforcement easier.

Mbadi said the aim is fairness. He said salaried workers suffer the most. Many teachers earn Sh40,000. Yet they lose a large part of it to PAYE. At the same time, some private earners make over Sh300,000 and pay nothing. The new system will close that gap.

At the same time, the government plans relief for low earners. Mbadi said President William Ruto has approved a new tax plan. It will exempt people who earn Sh30,000 or less. They will pay no income tax. For others, tax will only apply above that level.

Mbadi said this will boost spending. It will also help small businesses. He said lower taxes at the bottom will grow the economy.

With these changes, the government is changing course. It will no longer punish the compliant. It will now target the hidden earners.