KRA Drops Most Taxpayers from the Infamous ‘Special Table’

The Kenya Revenue Authority (KRA) has announced its decision to discontinue the placement of taxpayers on the infamous Special Table.

According to a March 10 memo from the Compliance Management Department/Division, the special table was added to the compliance program to discourage tax evaders.

The special table was also designed to serve as a deterrent for people involved in tax fraud and other crimes. The tool, however, evolved into the only one used to enforce compliance across all aspects, which KRA notes led to its abuse.

“This has led to abuse of the tool and punishing of genuine businesspeople and taxpayers instead of facilitating them to do business and subsequently pay their fair share of taxes,” part of the memo read.

Consequently, KRA has decided to discontinue placing taxpayers on the special table, except for those engaging in the missing trader scheme as either beneficiaries or facilitators, or those involved in tax fraud.

The memo states that the taxpayer will be added to the special table only after the manager and chief manager have submitted a description of the scheme in which the taxpayer is involved to the DC.

However, the removal process for missing trader schemers will remain unchanged, and any additions will be made only after approval.

“All taxpayers placed on the special table for reasons other than the missing trader scheme or tax fraud/crime will be removed from the special table unconditionally, starting today. Relationship managers will notify the taxpayers of the removal and what is expected of the taxpayer to ensure continued compliance,” the memo noted.

According to the memo, taxpayers will be removed from the special table by Thursday, March 12, 2026.

Missing Trader in VAT Compliance and Implications

During an address on missing traders in VAT compliance and the implications of a High Court judgement, KRA Chairperson Ndiritu Muriithi stated in December 2025 that taxpayers and business owners need to clearly show that they have paid the input value-added tax (VAT).

Ndiritu Muriithi gave an example, stating that in the year 2025, around March and April, approximately 9,000 businesses claimed they had paid around 39 billion in VAT that was untraceable by the KRA.

This action of untraceable VAT is what formed the basis of the special table by the KRA for taxpayers in Kenya.

Also Read: How KRA Body-Worn Cameras Will Protect Travellers and Traders from Exploitation

Benefits of the VAT Special Table According to KRA

• Reduces cases of abuse of traders’ PIN by fraudulent persons;
• Identifies erroneously added VAT obligations or VAT obligations that are no longer required.
• Enables traders to conduct business with compliant suppliers.

Also Read: KRA Explains Why You Still Owe Tax Even After Withholding Tax Is Paid

Implications for Taxpayer Added into VAT Special Table

• The taxpayer added in the VAT Special Table shall be restricted from filing VAT returns. Upon attempting to file the return, the system shall display the message: “This PIN is currently under review for VAT compliance irregularities. Please contact your respective Kenya Revenue Authority (KRA) Tax Service office (TSO).”
• Penalties for non-filing of VAT returns when a taxpayer has been placed on the VAT special table shall be addressed administratively.
• The system enhancements were designed to block claims from nil and non-filers for VAT, as well as from a list of suspected missing traders identified through previous audits and intelligence.
• Traders cannot claim input tax from taxpayers placed in the special table. Upon uploading of an original or amended VAT return that contains the PIN of a taxpayer who is in the special table, the entry shall be rejected by the system, and the following message shall be displayed: “This PIN is not eligible to input tax deduction.”
• Where a supplier was placed on the special table for being a PRWP but had declared the sales invoice in their VAT return for a trader whose input VAT has been disallowed, the trader can apply to their Tax Service Office (TSO) to have the input tax allowed provided that they support it with documentation as per Section 17(2) of the VAT Act 2013.

Traders whose PINs are placed in the special table due to non-compliance with the transition to TIMS/eTIMS are to visit their TSO for onboarding to eTIMS.

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