KRA Deregisters Over 20,000 Inactive Taxpayers

The Kenya Revenue Authority took decisive action in June 2025 by deregistering over 20,000 inactive taxpayers. This move is part of a broader compliance enforcement initiative to clean up the taxpayer registry and prevent input tax credit abuse.

The deregistration targets taxpayers who have been inactive for extended periods and helps curb VAT fraud by removing dormant entities from the system. KRA continues to strengthen its compliance measures to ensure a fair and transparent tax system.

Why This Action Was Taken

• Clean Registry: Remove dormant entities from the taxpayer database
• Prevent Fraud: Curb VAT fraud and input tax credit abuse
• Fair System: Ensure active taxpayers are not disadvantaged
• Compliance: Strengthen overall tax compliance

Impact on Taxpayers

### For Active Taxpayers - Cleaner registry means better service delivery - Reduced risk of fraud affecting the system - More accurate taxpayer data

### For Deregistered Entities - Entities can re-register if they become active again - Proper documentation required for re-registration - Opportunity to start fresh with proper compliance

What You Should Know

If you're an active taxpayer: - Ensure your registration details are up to date - File returns regularly to maintain active status - Respond to any KRA communications promptly

If you were deregistered: - You can re-register through the KRA iTax portal - Ensure all documentation is in order - Maintain compliance once re-registered

KRA continues to strengthen its compliance measures to ensure a fair and transparent tax system for all.