Kenya’s KRA enters “tougher digital phase,” targeting nil returns as eTIMS data exposes undeclared income

In early March 2026, KRA escalated enforcement against taxpayers filing nil returns despite recorded transactions—tightening the compliance net for digital-heavy sectors like betting and gaming.

Kenya’s tax enforcement regime moved into a tougher digital phase in the first days of March 2026, with the Kenya Revenue Authority (KRA) intensifying action against taxpayers who filed “nil returns” even though government systems show they earned income.

The crackdown is powered by the Electronic Tax Invoice Management System (eTIMS), which captures electronic invoicing data and enables KRA to cross-check declared income against transaction records. In the ongoing exercise, KRA has flagged 392,000+ taxpayers whose records show income despite nil filings, and has been notifying some via SMS/iTax prompts to file pre-populated returns and pay any tax due.

Business reporting says KRA’s approach is also tied to stronger iTax validations around the 2025 filing cycle. KRA has stated that the nil filing option for January–December 2025 income tax returns will apply for returns filed after 31 March 2026, when enhanced checks embedded in iTax take effect.

For sectors built on real-time digital payments—including licensed betting operators—the message is straightforward: as reconciliation between eTIMS transmissions and tax returns becomes more automated, under-reporting becomes harder to sustain. This isn’t a betting-specific tax change, but it raises the compliance bar for any business whose revenues leave a clear electronic trail.