The Kenya Revenue Authority (KRA) has responded to growing public anxiety by clarifying that it is not trying to access Kenyans’ personal M-PESA or bank accounts.
Speaking on Tuesday, July 29, during an interview on NTV’s Fixing the Nation, KRA Chairman Ndiritu Muriithi addressed the widespread confusion, assuring Kenyans that the new tax technology reforms had been misunderstood.
Muriithi emphasized that the authority has no interest in peeking into private bank accounts or mobile wallets. “We are not targeting mobile wallets. We are not going after bank accounts. KRA is not looking to access your personal funds,” he firmly stated.
The clarification came after several reports had caused alarm among Kenyans, suggesting that KRA planned to monitor people’s bank and mobile money transactions.
These concerns were mostly centered around privacy issues and fears that the government would begin spying on how individuals manage their money.
However, Muriithi cleared the air, explaining that the tax body’s focus is not on people’s financial habits or balances, but rather on how businesses handle transaction-level data.
He used a restaurant as an example to explain the system. “When you eat at a restaurant and pay your bill, that bill includes VAT. Normally, the business owner is expected to collect that VAT and send it to KRA.
But with new technology, why not deduct the 16% VAT automatically at the point of payment?” Muriithi posed.
He said the new system would ensure that the VAT owed to KRA goes directly to the authority during the transaction, instead of relying on business owners to declare and remit it later — a process that often leads to tax evasion or delays.
The chairman explained that this automation is not new and is already being successfully used in sectors like betting. He noted that betting companies had previously struggled with taxation on winnings, but the problem was solved by deducting tax at the source before payouts are made.
“Now it’s easier for everyone. The tax is handled upfront, and people get their net winnings without delays or disputes,” he explained.
Muriithi reassured the public that these changes are not designed to intrude on individual financial privacy but are simply aimed at improving tax compliance from businesses. He acknowledged that people are concerned, especially when it comes to digital tools and government access, but urged Kenyans not to worry.
“Our goal is to improve tax collection in a way that is efficient and fair. We’re not here to snoop on your bank accounts or your M-PESA. We’re only making the system smarter, not more invasive,” Muriithi concluded.
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