The taxman revealed that its detectives had identified 392,162 taxpayers who collectively owe the government a staggering Sh759.7 billion in unpaid taxes.
The move follows an extensive audit of the withholding tax registry that exposed widespread non-compliance across multiple sectors of the economy.
According to KRA, the audit found that many taxpayers had significantly under-declared their income, with figures submitted to the authority falling far below amounts reported by third parties such as banks, suppliers, and contracting entities.
The discrepancies raised red flags, prompting deeper investigations into suspected tax evasion and avoidance schemes.
KRA warned that those implicated now face severe enforcement measures, including freezing of bank accounts and other assets, travel bans, and the deactivation of Personal Identification Numbers (PINs).
Such measures would effectively lock affected individuals and firms out of critical government and financial services, including business transactions, loans, and public procurement.
The authority said the crackdown targets both companies and high-net-worth individuals, with a particular focus on contractors, suppliers, and businesses that have consistently failed to remit withholding tax despite benefiting from lucrative deals.
George Obell, the Commissioner for the Micro and Small Taxpayers Department, noted that KRA is increasingly relying on data-driven compliance systems and third-party information to seal loopholes that have historically enabled tax cheating.
The announcement comes at a time when the government is under pressure to boost revenue collection amid rising public debt and budgetary constraints.
KRA urged affected taxpayers to voluntarily regularise their tax affairs, warning that enforcement actions would be swift and uncompromising.
