The Kenya Revenue Authority (KRA) has issued a 30-day tax compliance notice to traders operating in Nairobi and Mombasa, warning that businesses failing to meet statutory tax obligations risk heavy fines, closure of premises, seizure of goods, and legal prosecution.
According to KRA, the directive targets traders who have not registered or remitted mandatory taxes, including Value Added Tax (VAT), Pay-As-You-Earn (PAYE), income tax, and turnover tax. Affected businesses have been ordered to regularize their tax status within 30 days to avoid enforcement action.
KRA Targets Non-Compliant Traders in Major Business Hubs
In a statement released on Tuesday, KRA said the enforcement drive is focused on Nairobi’s Central Business District (CBD) and key markets in Mombasa, where inspections have revealed widespread tax non-compliance among small and medium-sized enterprises.
Speaking during a press briefing, KRA Commissioner General James Kinyua emphasized that tax compliance is a legal requirement for all businesses operating in Kenya.
“Every business must comply with tax laws. Taxes support healthcare, education, infrastructure, and other essential public services. We urge traders to act immediately,” Kinyua said.
Audit Teams Deployed as 30-Day Deadline Takes Effect
KRA confirmed that audit and enforcement teams have already been deployed across Nairobi and Mombasa to verify tax registration and payment records. Businesses found operating illegally after the deadline will face immediate enforcement, including closure and prosecution.
Traders’ associations acknowledged the notice but raised concerns about the short compliance window. A representative from the Nairobi Traders’ Alliance said many small traders face challenges such as system delays and lack of awareness.
KRA Offers Support as Deadline Counts Down
To ease compliance, KRA urged traders to use its online tax registration platforms, customer service desks, and helplines. The authority said support services are available to assist businesses with PIN registration, VAT registration, PAYE setup, and tax filing.
Why KRA Is Cracking Down on Tax Evasion
Tax experts say the crackdown is part of a broader government strategy to expand the tax base, increase domestic revenue, and reduce tax evasion, particularly in high-volume commercial centres.
The 30-day compliance deadline is already in effect, and traders are advised to confirm their tax status immediately to avoid disruption of business operations.
The enforcement campaign highlights KRA’s renewed commitment to strict tax enforcement and sends a strong warning to non-compliant traders in Nairobi and Mombasa.
