On February 18, the KRA had begun flagging taxpayers<\/strong> whose filings did not match transaction data captured in the Electronic Tax Invoice Management System <\/strong>(eTIMS). The system records electronic invoices<\/strong> on records.<\/p>\n\n\n\n In the ongoing enforcement exercise, KRA has flagged more than 392,000 individuals <\/strong>whose records showed income despite filing nil returns, reflecting the scale of undeclared activity<\/strong> now captured through systems like eTIMS.<\/p>\n\n\n\n Taxpayers were informed via SMS and iTax notifications <\/strong>that their filings did not match recorded transactions<\/strong>. \u201cDear (USER), Our records<\/strong> indicate that while you filed a Nil Income Tax Return for 2024, you earned income in 2025 as evidenced by your eTIMS transmissions,\u201d said the notification. according to Kenya Times.<\/p>\n\n\n\n The Authority’s notification further instructed: \u201cConsequently, your pre-populated 2025 Income Tax Return<\/strong> is ready for filing. Please log in to iTax to file your return and pay<\/strong> any tax due.\u201d <\/p>\n\n\n\n KRA Deputy Commissioner for Taxpayer Experience Patience Njau<\/strong> said: \u201cKRA is using real-time data <\/strong>from electronic invoices and customs records to identify non-compliant PINs.\u201d<\/p>\n\n\n\n From January 1, 2026, KRA introduced enhanced validation controls<\/strong>, including a compliance mechanism known as the \u201cSpecial Table\u201d, designed to restrict repeated nil filings where transaction data exists. Businesses<\/strong> were given until March 31 2026 to adopt eTIMS fully and resolve compliance gaps<\/strong>.<\/p>\n\n\n\n While the February enforcement action<\/strong> did not single out the gambling sector, its relevance to betting operators<\/strong> is clear. Licensed betting firms operate predominantly through digital platforms and mobile money channels, generating electronic transaction trails that fall within Kenya\u2019s broader digital tax <\/strong>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<\/strong>.<\/p>\n\n\n\n The development does not introduce new gambling-specific tax measures. However, it reinforces oversight <\/strong>by making it more difficult for any electronically transacting business to under-report <\/strong>income. For Kenya\u2019s regulated betting market, where tax compliance remains central to policy debates, the 2026 digital enforcement push signals a firmer alignment<\/strong> between transaction visibility and tax accountability<\/strong>.<\/p>\n\n\n\n As KRA deepens its data-driven compliance model, the message to all sectors, betting included, is clear: electronic revenues<\/strong> must match electronic<\/strong> reporting.<\/p>\n\n\nEnhanced oversight for sectors<\/h2>\n\n\n\n
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