KRA orders SAFARICOM to disclose traders who have closed Lipa Na Mpesa accounts to evade paying taxes

 Wednesday, October 18, 2023 – The Kenya Revenue Authority (KRA) has ordered Safaricom Limited to disclose the identity of customers who have closed Lipa Na Mpesa accounts to evade paying taxes.

KRA noted a significant number of businesses using Lipa Na M-Pesa reverting to cash transactions in the past weeks.

During a Media Lab in Nairobi on Tuesday, Chief Manager Domestic Tax Department Caroline Rotich said KRA is working with Safaricom to identify businesses that stopped using Lipa na M-Pesa.

“Many businesses are now closing Lipa Na M-Pesa merchant accounts, Buy Goods and Pochi La Biashara Tills. We are collaborating with Safaricom to get information on such traders who are jeopardising tax compliance measures.”

“We will also facilitate integration and do follow-ups once we have the information to enhance compliance through our RSA programme,” said Rotich.

Rotich explained that Lipa Na M-Pesa merchant solutions enhance tax compliance.