If you have been getting messages from KRA saying you owe tax arrears, you are not alone. Between April 22 and April 25, thousands of Kenyan traders received SMS notices demanding they settle outstanding tax obligations before April 30. If you thought nobody was watching your M-Pesa transactions — the tax authority now says otherwise.

Here is what is actually happening and what it means for your duka or online selling operation.

What KRA Has Actually Done

The Kenya Revenue Authority has moved from sending nil-return reminders to actively tracking M-Pesa till numbers and Paybill accounts that show regular transaction activity. According to TechWeez, KRA's systems can now identify traders who switch till numbers to avoid remitting withholding tax on those transactions.

The crackdown has two fronts:

• Traders with overdue tax arrears: KRA has sent direct SMS notices to specific taxpayers with outstanding amounts. These are not generic reminders — they name the taxpayer and specify an amount owed.
• Nil return filers: KRA is also targeting businesses that filed nil returns despite having active till and Paybill accounts — a red flag that triggers a compliance review.

The April 30 deadline is real. Tuko News reported on steps taxpayers can take before that date to clear arrears and come into compliance.

What This Means for Your Duka or Online Selling Business

If you operate a duka or sell through WhatsApp and Instagram with an M-Pesa Till, here is the practical reality:

• Every M-Pesa transaction leaves a digital trail. KRA can now match Till numbers and Paybill accounts to registered taxpayers. Switching to a new Till number will not hide you — the authorities have signaled they are tracking this specifically.
• Your M-Pesa statement is now potentially an audit document. If your Till shows regular weekly inflows, but your tax filings show little or nothing, you have a problem whether or not KRA has contacted you yet.
• Nil returns are a risk, not a safe option. Filing nil returns while actively trading signals to KRA that something is wrong. Even if you believe you owe no tax, your filing status must match your actual transaction activity.
• The window to come in voluntarily is closing. The April 30 deadline means the grace period for self-reporting without penalties is about to end. If you have arrears, settling them before the deadline limits your exposure to fines and interest.

What You Should Actually Do Right Now

You do not need an accountant for this. Here is what matters:

1. Pull your M-Pesa statements for the last 12 months. If you use a business Till, download the full transaction history from your M-Pesa app or USSD.
2. Check your KRA iTax filing status. Log into itax.kra.go.ke and check whether you have any outstanding assessments. File any missing returns — even nil returns if you genuinely had no tax liability in a period.
3. If you have arrears and cannot pay in full: KRA has been allowing installment arrangements for small taxpayers. Contact your local KRA branch or use the iTax system to apply for a payment plan before the deadline.
4. If you have been switching Tills to avoid remitting tax — stop. The risk has gone up substantially. KRA has said it is tracking this specifically.

The Bigger Picture

For years, small Kenyan traders operated with a practical understanding that unless you were employing formal accounting, the tax system was something that happened to larger businesses. That assumption is increasingly hard to sustain. KRA is actively building the data infrastructure to see small-scale M-Pesa transactions — and the enforcement signals are getting clearer.

This is not about being punitive. The authority's position is that traders using M-Pesa Tills and Paybill numbers have been operating in a space where transaction data was available but not being matched to tax obligations. That window is closing.

If you are a small retailer who has been meaning to sort out your tax status — now is the time. Not because of the deadline, but because the risk of not doing so has genuinely increased.

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