The Kenya Revenue Authority has clarified that it has not yet rolled out an artificial intelligence system to track tax evasion, following confusion and concern among taxpayers over reports circulating online.
Earlier reports suggested that the tax authority had already introduced an Intelligence Analysis Tool (IAT) capable of analysing large financial datasets to detect suspicious taxpayer activity. The claims triggered debate among business owners and employees who feared that the system would intensify monitoring of personal income and business transactions.
However, KRA moved to calm the concerns, saying the information had not been officially communicated by the authority.
“We haven't received that message yet, so I don't know where you're getting the information. That information has not come from KRA. At the moment, don't put it into action until it comes from our KRA office,” the agency stated.
The clarification came as the Kenya Revenue Authority Micro & Small Taxpayers Department Commissioner George Obell addressed participants during the 7th Edition of the MSMEs Conference and Expo held at the Sarit Centre on March 13.
Obell explained that the tax agency does not monitor individuals on social media or other digital platforms as part of tax enforcement efforts. Instead, he said the authority relies on legitimate data sources to strengthen compliance.
“We are actually not looking into that environment, but there are some other useful data that KRA has that can be used to track tax compliance, but not those things flaunted on the digital ecosystem,” Obell said.
Despite dismissing claims that the system has already been launched, the tax agency previously indicated that it intends to integrate advanced technology into tax administration. In November 2025, then KRA Commissioner General Humphrey Wattanga announced plans to introduce Artificial Intelligence and Machine Learning tools to improve revenue collection and detect patterns of tax evasion.
According to KRA, the system is designed to modernise tax administration by analysing large datasets from multiple third-party sources, including the Business Registration Service.
The authority earlier indicated that implementation would occur in phases starting January 1, 2026, beginning with an automated validation framework for 2025 tax returns. Additional upgrades are expected to follow, including AI-powered cargo scanners at ports to improve monitoring of goods entering the country.
KRA said the broader goal is to shift from manual tax inspections to data-driven assessments that reduce human error and curb corruption within the tax system. Full integration across more sectors is expected between late 2026 and early 2027 as the authority expands algorithm-based enforcement tools.
