The Kenya Revenue Authority has finally addressed the growing concerns from ordinary Kenyans about their mobile money transactions. Many people have been worried that the taxman would start watching every single M-Pesa send and receive, including money sent to family or friends. But KRA now says that is not the case.
According to a clarification issued by the Authority, only commercial transactions done through Paybill numbers, Till numbers, and other merchant payment platforms used for trade and business will be tracked. George Obell, who is the Commissioner for Micro and Small Taxpayers, explained this during the Meru Citizen Assembly. He made it clear that personal peer-to-peer transactions on any mobile money platform are not what KRA is after.
“It is significant to understand that KRA is not interested in personal transactions,” Obell said. This means things like sending money to a relative, contributing to a family event, or repaying a friend will not fall under the taxman’s watch.
The clarification comes after many Kenyans raised privacy concerns over reports that KRA planned to link real-time tax systems to mobile money transactions for everyone in the country. People were afraid that their daily financial activities would be exposed. KRA has now stepped in to calm those fears, insisting that their interest is strictly limited to transactions linked to trade and business.
To make it easier for businesses to comply, KRA is working closely with payment service providers and financial institutions. Obell revealed that the Authority is developing a new solution called the Virtual Electronic Tax Register, or Virtual ETR. This system is designed to help businesses that receive payments through digital platforms issue electronic tax invoices at the point of payment.
“The solution is intended to support businesses that receive payments through digital platforms by enabling issuance of electronic tax invoices at the point of payment or receipt of payment,” Obell added. He also disclosed that KRA is still engaging payment service providers to make sure the solution is efficient, secure, and supportive of businesses while protecting customer privacy.
For ordinary Kenyans who just send money to family or friends, nothing changes. For business owners, however, the message is clear: commercial transactions done through business payment channels will now be under KRA’s radar, but the goal is to make compliance seamless rather than intrusive.
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