KRA slows down on M-Pesa paybills tax register plan, turns focus to SMEs

An M-pesa agent serves a customer along Mama Ngina Street, Nairobi on August 15, 2023.

Photo credit: File | Nation Media Group

The government has slowed down on plans to convert all M-Pesa paybills into electronic tax registers (ETRs), opting instead to focus on small businesses enjoying turnover tax and rental income earners.

The State had earlier planned to convert at least two million digital payment touchpoints into virtual ETRs effective December 25, 2024, a move it said was geared towards sealing revenue leakage in a rapidly growing digital economy.

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