M-Pesa Paybills to be Integrated with the Kenyan Tax System by December 2024

The Kenyan government is set to transform mobile money pay bills and till numbers into electronic tax registers (ERTs) by 25 December 2024 in an initiative to curb tax evasion.

This move will specifically target traders utilising mobile money platforms like Safaricom’s M-Pesa, which have not yet been included in the existing tax framework.

Of the estimated two million companies using mobile pay bill services, only 200,000 are registered with physical ERTs, highlighting a significant gap in revenue collection potential. The initial focus of the touted transition will be on businesses generating over Sh5 million in annual sales.

Kenya’s extensive mobile money user base offers a prime opportunity to improve revenue collection massively in the West African nation.

Kenya Revenue Authority Upgrading the System

In conjunction with this effort, the Kenya Revenue Authority (KRA) is actively working on integrating its systems with mobile phone operators to identify tax evaders.

As part of this new strategy, mobile money transactions will soon be treated similarly to an electronic tax invoice system (eTIMS), facilitating easier sales and tax computation tracking.

This measure comes amid mounting pressure on the Kenyan government to boost funding following the retraction of several tax measures proposed in the Finance Bill 2024, prompted by public protests.

Are Mobile Money Paybills Used for Online Gambling?

Mobile money paybills are widely used in online gambling in Kenya. Platforms like Airtel Money and M-Pesa allow users to make deposits and withdrawals easily, making online gambling more accessible, especially to those who may not have access to traditional banking services.

SportPesa, one of the leading online betting platforms in Kenya, offers pay bill options for deposits. Users can simply select the relevant pay bill option, enter the business number, and complete the transaction using their mobile money PIN.

This convenience has significantly boosted the online gambling industry in Kenya, facilitating players' funding of their accounts and receiving winnings promptly.

Using Cryptocurrency for Online Gambling in Kenya

Using cryptocurrency for online gambling in Kenya offers several distinct perks, especially for those who value privacy and enhanced security.

1. Anonymity: Cryptocurrency transactions are pseudonymous – meaning your personal information isn’t directly tied to your transactions, allowing players the freedom to gamble online without revealing their identities.
2. Security: Crypto transactions are secured by blockchain technology, making them less susceptible to fraud and hacking than more traditional payment methods.
3. Speed: Transactions using Bitcoin or other cryptocurrencies are processed quickly, allowing for faster deposits and withdrawals.
4. Reduced Fees: Cryptocurrency transactions typically have lower fees than traditional banking methods, making them a more cost-effective option for online gambling.
5. Increased Accessibility: Cryptocurrency allows you to gamble from anywhere with an internet connection without needing a bank account or credit card.

These perks offer online gamblers using cryptocurrency in Kenya the means to ensure the privacy and security of their transactions as the country’s digital betting landscape expands.