The Kenya Revenue Authority (KRA) is stepping up its use of international financial data to improve oversight of multinational companies, in a move aimed at tightening tax compliance and reducing profit shifting.
KRA says the growing exchange of tax information with other countries is helping it better understand where multinational firms generate income and where they actually pay taxes. This is enabling the authority to identify gaps that have in the past allowed companies to minimise their tax obligations.
The strategy is supported by Kenya’s participation in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which allows the country to share tax information with over 100 jurisdictions. In addition, KRA is using mandatory Country-by-Country Reports submitted by large multinational firms to get a clearer picture of their global operations, including revenues, profits, and taxes paid.
This data is helping auditors flag high-risk taxpayers for closer review, strengthening enforcement without relying only on traditional audits. At the same time, KRA is increasing scrutiny of related-party transactions such as loans, management fees, and royalties, which are often used in cross-border tax planning.
The authority says the approach is part of a broader effort to protect Kenya’s tax base while staying aligned with global tax reforms. Kenya is prioritising the Qualified Domestic Minimum Top-Up Tax and continues to review other international tax rules under the OECD’s Pillar Two framework, while balancing the need to remain attractive to investors.
