By Staff Reporter | 5484 Media | NAIROBI, Kenya
STORY HIGHLIGHTS
- KRA has activated global data-sharing rules requiring Kenyan financial institutions to report offshore accounts linked to tax residents from January 1, 2025.
- The move tightens the net on tax evasion as foreign banks begin automatically sending detailed financial data to Kenya.
The Kenya Revenue Authority (KRA) has escalated its crackdown on tax evasion by releasing an official list of 78 countries whose financial institutions will now automatically share account information on Kenyan tax residents.
In a public notice dated Thursday, December 18, 2025, KRA confirmed that the reporting requirement takes effect from January 1, 2025, in line with the Common Reporting Standard (CRS) introduced under the 2023 tax rules.
The CRS is a global framework designed to curb cross-border tax evasion by compelling financial institutions to identify and report accounts held by foreign tax residents. Under the new directive, Kenyan banks, insurers, and investment firms must align their systems to capture and submit relevant data linked to individuals and entities with financial interests in the listed jurisdictions.
Countries Covered Under the New Rules
The reportable jurisdictions include major global and regional financial hubs such as the United Kingdom, Switzerland, Singapore, South Africa, Mauritius, United States-linked territories, China, Germany, France, Japan, and Australia, alongside African neighbours Uganda, Rwanda, Ghana, and Seychelles, among others.
In total, 78 countries and territories fall under the reporting obligation, significantly expanding KRA’s visibility into offshore wealth held by Kenyan taxpayers.
What Information Will Be Shared
Under the CRS framework, financial institutions in the listed countries will transmit standardized data packages to KRA annually.
The information includes personal identity details such as full name, address, KRA PIN, date and place of birth, and jurisdiction of tax residence. This allows KRA to match offshore accounts to specific Kenyan taxpayers.
Account-level data will also be shared, including the name of the foreign financial institution, account number, year-end balance as of December 31, and whether the account was opened, closed, or active during the year.
Crucially, financial income details will be disclosed, covering interest earned, dividends, gross proceeds from the sale of assets like shares or bonds, and any other income generated from the account. This data forms the backbone of KRA’s tax assessments on undeclared foreign income.
Stricter Rules for Companies and Trusts
The reporting requirements are even more stringent for offshore companies, trusts, and similar entities.
For passive entities, banks are required to “look through” the structure and disclose the personal details of controlling or beneficial owners — the individuals who ultimately control the funds. Details of the entity itself, including its name, address, and tax identification number, will also be shared.
Accounts with balances exceeding $1,000,000 (about Ksh129 million) will be subjected to enhanced due diligence, involving deeper manual reviews to ensure no Kenyan tax links are overlooked.
Implications for Taxpayers and Institutions
The move marks a significant shift in Kenya’s tax enforcement landscape. For taxpayers, it effectively ends the secrecy traditionally associated with offshore accounts, increasing the risk of detection for undeclared foreign income and assets.
For financial institutions, the directive means system upgrades, tighter compliance checks, and higher reporting obligations to meet international transparency standards.
KRA says the initiative will strengthen domestic revenue mobilisation, promote tax fairness, and align Kenya with global best practices on financial transparency.
Support and Compliance
To support compliance, KRA has provided contact numbers 0709 017 997 and 0709 017 935, as well as the email address crs@kra.go.ke. Taxpayers can also access free services via Dial *222#.
As automatic information exchange goes live in 2025, Kenyan taxpayers with offshore financial interests are being urged to review their tax affairs and ensure full disclosure — or risk enforcement action backed by unprecedented access to global financial data.
