KRA M-Pesa till data plan targets small traders’ income

Get breaking business news on WhatsApp

Updated 30 October 2026

The Kenya Revenue Authority (KRA) plans to use M-Pesa till data, including Till Number and Pochi la Biashara records, to find small businesses that under-declare their income. KRA told the National Assembly’s Finance and National Planning Committee about the plan this week, as reported by Tuko on 29 October 2026.

Why KRA wants M-Pesa till data

The plan follows a weak first quarter. From July to September 2026, domestic VAT collections were KSh98.2 billion, KSh2.6 billion below target. PAYE collections were KSh154.9 billion, KSh7.3 billion below target. Comparing what merchants receive through M-Pesa with what they declare would let KRA spot traders whose sales are far higher than the income on their returns.

Safaricom eTIMS invoices

KRA and Safaricom are also in early talks about M-Pesa generating eTIMS invoices for merchants. A KRA official said Safaricom had proposed “reverse invoicing”, where invoices are created for merchants who are paid through tills and paybills and sent to KRA at the end of the day. KRA already uses this approach with supermarkets (TechTrendsKE). We covered the eTIMS talks in detail here.

What traders should do now

• Make sure your declared turnover matches what goes through your till or Pochi. Personal and business money mixed in one account is a common cause of mismatches.
• If your turnover is below the VAT threshold, check whether Turnover Tax applies to you.
• Keep records of money that is not sales income, such as refunds and transfers from family, so you can explain it if KRA asks.

Useful guides: Pochi la Biashara for small traders, how an M-Pesa business till works and Turnover Tax vs Income Tax vs VAT.

FAQ

Has KRA started using M-Pesa till data?

KRA disclosed the plan to MPs. It has not announced a start date, and the eTIMS talks with Safaricom are at an early stage.

Are personal M-Pesa transfers affected?

The plan as reported targets business tills and Pochi la Biashara accounts, not person-to-person transfers.

Why is KRA doing this now?

KRA missed its first-quarter VAT and PAYE targets for 2026/27.