The Kenya Revenue Authority (KRA) has begun a targeted crackdown on firms suspected of using VAT registration to help other businesses evade tax, according to a statement made on 12 November 2026.

Commissioner for Micro and Small Taxpayers George Obell told stakeholders in Machakos that KRA will tighten scrutiny of new VAT registration requests to identify participants in suspicious arrangements.

Obell said the authority is reviewing its registration procedures after receiving complaints about long processing times, aiming to speed up approvals for established businesses whose operations can be readily verified.

Businesses that can demonstrate legitimate operations will face fewer checks, while those raising concerns will undergo additional verification before a VAT number is issued.

KRA Chairperson Ndiritu Muriithi urged firms to understand their tax obligations, noting that many non‑compliant entities are simply unaware of the legal requirements.

Under the Tax Procedures Act, companies found guilty of tax evasion can be penalised with a fine equal to twice the amount of tax avoided.

The crackdown forms part of KRA’s broader effort to close loopholes, boost government revenue and improve overall taxpayer compliance, following recent intensification of enforcement measures.