The Kenya Revenue Authority (KRA) has stepped up enforcement actions against tax evasion, including a raid on October 7, 2026 and the exposure of a KSh4 billion VAT fraud scheme.
During the October raid in a Kileleshwa apartment, officers seized electronic goods worth about KSh13 million, comprising 529 items such as 358 laptops, nine iPads and 162 accessories.
In the VAT fraud case announced in October 2026, KRA said 42 individuals and companies linked to 72 entities had generated 62,869 fictitious electronic invoices totalling roughly KSh33.83 billion, enabling claims of about KSh3.996 billion in input VAT deductions.
KRA forwarded 57 investigation files to the Office of the Director of Public Prosecutions and reported that six suspects had been arrested at the time of the report.
In November 2026 the agency announced tighter scrutiny of firms suspected of registering for VAT without genuine operations, and Commissioner for Micro and Small Taxpayers George Obell said “the authority was introducing additional verification measures to identify suspicious applications while making registration easier for legitimate businesses”.
Under the Tax Procedures Act, businesses found guilty of tax evasion may face penalties equal to twice the tax avoided and may also be subject to criminal prosecution and fines.
KRA’s enforcement relies on eTIMS monitoring of electronic invoices, financial investigations of records, verification of business registrations, intelligence-led raids and collaboration with other government agencies.
The authority warned that companies must keep accurate financial records, issue genuine electronic invoices and ensure that claimed expenses and input VAT are supported by real transactions.
On November 5, 2026 KRA reported that it had surpassed KSh1 trillion in revenue collection, underscoring its push for higher compliance and urging taxpayers to report suspected evasion.
