Kenya’s digital tax enforcement strengthens compliance in betting and other sectors
KRA’s 2026 eTIMS system ensures all digitally transacting businesses, including betting operators, accurately report income and reconcile transactions, enhancing transparency across the economy.
Kenya.- Kenya’s tax enforcement regime entered 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”, including many with recorded income in government systems. The move has wider implications for digitally transacting sectors, including betting and gaming, as it allows the Authority to validate declared income against real-time transaction data
On February 18, the KRA had begun flagging taxpayers whose filings did not match transaction data captured in the Electronic Tax Invoice Management System (eTIMS). The system records electronic invoices on records.
In the ongoing enforcement exercise, KRA has flagged more than 392,000 individuals whose records showed income despite filing nil returns, reflecting the scale of undeclared activity now captured through systems like eTIMS.
Taxpayers were informed via SMS and iTax notifications that their filings did not match recorded transactions. “Dear (USER), Our records indicate that while you filed a Nil Income Tax Return for 2024, you earned income in 2025 as evidenced by your eTIMS transmissions,” said the notification. according to Kenya Times.
The Authority’s notification further instructed: “Consequently, your pre-populated 2025 Income Tax Return is ready for filing. Please log in to iTax to file your return and pay any tax due.”
KRA Deputy Commissioner for Taxpayer Experience Patience Njau said: “KRA is using real-time data from electronic invoices and customs records to identify non-compliant PINs.”
Enhanced oversight for sectors
From January 1, 2026, KRA introduced enhanced validation controls, including a compliance mechanism known as the “Special Table”, designed to restrict repeated nil filings where transaction data exists. Businesses were given until March 31 2026 to adopt eTIMS fully and resolve compliance gaps.
While the February enforcement action did not single out the gambling sector, its relevance to betting operators is clear. Licensed betting firms operate predominantly through digital platforms and mobile money channels, generating electronic transaction trails that fall within Kenya’s broader digital tax infrastructure. As KRA strengthens reconciliation between transmitted transaction data and filed returns, industries built on real-time digital payments – including betting – operate under closer automated scrutiny.
The development does not introduce new gambling-specific tax measures. However, it reinforces oversight by making it more difficult for any electronically transacting business to under-report income. For Kenya’s regulated betting market, where tax compliance remains central to policy debates, the 2026 digital enforcement push signals a firmer alignment between transaction visibility and tax accountability.
As KRA deepens its data-driven compliance model, the message to all sectors, betting included, is clear: electronic revenues must match electronic reporting.
