The Kenya Revenue Authority (KRA) is preparing a new way of taxing cryptocurrency transactions by monitoring the stock market. This system will be connected to cryptocurrency platforms to accurately track each transaction by time and value. The goal is to improve tax collection from cryptocurrencies in accordance with the law, which requires taxation of all cryptocurrency income.
Additionally, KRA is implementing artificial intelligence and machine learning to combat tax fraud and increase transparency. An important step will be the use of the mobile payment system M-Pesa as a tax collector starting from December 25, 2024. However, these measures have sparked protests among young people who see them as an infringement on financial freedom.
The government aims to make Kenya a leader in the digital economy but faces civil discontent, which may affect the success of the reforms.
