Kenya’s tax enforcement drive is facing growing criticism from traders and small business owners who say the Kenya Revenue Authority‘s increasingly aggressive compliance measures are hurting enterprises across the country, particularly in the Mt. Kenya region where thousands of families depend on trade, imports and small businesses for their livelihoods.
At the centre of the debate is KRA Board Chair Ndiritu Muriithi, who has championed a technology-driven approach aimed at expanding the tax base and increasing revenue collection through tighter enforcement and digital monitoring systems.
The concerns intensified after businesswoman and gospel musician Loise Kim announced the closure of her import business, saying the cost of bringing goods into the country had become unsustainable.
Her decision resonated strongly among traders in Mt. Kenya, many of whom supported the Kenya Kwanza administration and now argue that government policies are making it increasingly difficult for businesses to survive.
For many entrepreneurs, Kim’s case is not an isolated incident but a reflection of wider frustrations within the business community.
Under the current tax administration framework, KRA has expanded the use of digital tools such as the Electronic Tax Invoice Management System (eTIMS), allowing authorities to verify transactions, monitor compliance and cross-check business records in real time. KRA argues that the system is designed to improve transparency, seal tax loopholes and boost revenue collection.
The authority has credited digital integration and compliance initiatives for increased revenue performance during the 2025/26 financial year.
However, many small and medium-sized enterprises say the new system has transferred the burden of enforcement onto ordinary traders.
Business owners complain that they can lose legitimate tax deductions if suppliers fail to comply with eTIMS requirements. In practice, this means a trader can face a higher tax bill because of mistakes or non-compliance by another business in the supply chain.
Many operators in informal and semi-formal sectors say the rules do not reflect the realities of how business is conducted on the ground.
Critics have increasingly linked these challenges to Ndiritu Muriithi’s leadership at KRA. While Muriithi has publicly stated that his vision is to transform KRA into a professional, fair and service-oriented institution that leverages technology to improve compliance, opponents argue that the reality experienced by many businesses is one of relentless enforcement and rising compliance costs.
The frustration is particularly visible in the Mt. Kenya region, where many traders feel that businesses largely owned by Kikuyus are bearing a significant share of the pressure created by stricter tax collection measures, declining consumer spending and rising operational costs.
Although KRA applies its policies nationally and does not target any community, the perception that the region’s entrepreneurial class is under siege has gained traction among some business owners.
As the government continues its push to expand the tax base and increase revenue collection, the debate is shifting beyond taxation alone.
Many entrepreneurs now argue that the real challenge is finding a balance between raising government revenue and protecting the businesses that create jobs, support families and drive economic growth.
Unless those concerns are addressed, critics warn that more businesses could follow Loise Kim’s path, deepening fears that Kenya’s tax crackdown is becoming a threat to enterprise rather than a tool for economic development.
