UPDATE: KRA plans to link eTIMS with M-Pesa and other payment platforms so taxes can be paid instantly and businesses can comply more easily.

The Authority is also training 3,500 agents to support taxpayers across the country, as it seeks to formalise more businesses and improve voluntary compliance.

The move will further increase value-added tax (VAT) contribution to gross domestic product from 4 P.c to 6 P.c. Currently, only about 250,000 businesses are VAT-registered, a figure KRA considers too low.