Hehehe they are very notorious for this. Watu walipe ushuru. KRA have a hotline you can snitch on

I know of a small petrol stations owner who has registered as an M-PESA agent so basically when you pay by withdrawing from M-PESA Agent you are paying Him.

Could it be a way of escaping Merchant fees charged by Safaricom on Paybill/Buy Goods and also gaining from M-PESA Agent fees?

....does KRA have access to M-PESA transactions? recent media reports of KRA wanting M-PESA transaction data seems to point that they don't have it.

I closed the books on KK and ARM a long time ago so where is the shoe still pinching you?

Kenya: Country's Debt and Budget Deficit a Spending, Not Revenue, Problem
https://allafrica.com/stories/201906170102.html

You should also "ongeza ya kutoa" when you pay by M-Pesa.

Is it still mandatory to have ETR machines in business premises? I once(sio ktambo) visited Voi town and found that almost all businesses(e.g., butcheries, bars and restaurants, lodging and accommodation) offered ETR receipts. Could Voi be the most tax compliant town in Kenya?

This is Kenya. It is for everyone to assess their own taxes and for KRA confirm compliance. There is no prescribed method of collecting sales as long as prescribed records are kept, taxes computed, returns done and taxes paid.

The withdrawal from an agent is like the Gmail draft that terrorists used to communicate, a guy in Iran would compose a message in Gmail but save it as a draft, then an accomplice inside the US or anywhere would open the gmail account read and delete the draft, the email was not sent so google didn't see shit.

Now for agent withdrawal you the customer pay the fees, the vendor does not pay safcom or bank for vendor fee which saf charges vendors on the lipa na Mpesa platform, in the withdrawal arrangement the customer not only pays the fees but the vendor gets paid by saf, sweet deal both ways for the vendor.

On-ground surveillance is better in smaller towns, rather than the predominantly risk-based compliance checks in larger cities like Nairobi and Mombasa.

Why are you OK with paying 3% (or more) for your booze by agreeing to use that system? Kwani, is it a monopoly?

How does Safaricom make money from Lipa-na-mpesa "buy goods service"? Is this what you are referring as merchant fees? What advantages does a till number have that will make a business want to incur costs for it in the form of merchant fees?

Note. I am not suggesting they start charging the customer for it.

These are some of the advantages merchants get with till number

1)Once you pay with lipa na mpesa you can't reverse the transaction, only the merchant can authorise the reverse,
2) there is no limit how much money can be collected on a till number.
3) Cash handling is risky and expensive, money can be stolen by thugs or by fraudulent employees, mpesa provides a great alternative
4) a till number typically charges 1% of all money paid to it which is much cheaper than credit/debit cards which charge over 3% in most cases
5) customers spend more when paying via mpesa, since they typically have access to more money in mpesa than in cash
6) merchants get a nice portal where they can audit all payments in a computer and transfer the funds to a bank account, much easier than you can do if you receive the money on a regular mpesa line