The Kenya Revenue Authority is increasingly relying on detailed tax audits to verify whether businesses and individuals have correctly declared and paid taxes, with taxpayers being advised to maintain complete financial and transactional records.

Audits may involve reviews of income tax, VAT, withholding tax, customs records, bank statements, contracts, invoices, payroll records and electronic data, depending on the taxpayer and the nature of the investigation.

KRA can assess additional tax where it finds under-declaration, unsupported claims or inconsistencies, and taxpayers may be required to explain transactions several years after they occurred.

Tax advisers are urging businesses to reconcile returns with financial records and respond promptly to information requests.