Over 95,000 Kenyans risk losing their salaries in September after the Kenya Revenue Authority (KRA) deactivated their PINs.
Following the de-listing, employers will withhold salaries due to the Pay As You Earn (PAYE) deduction that can only be credited to an active KRA PIN.
Spreading across the public and private sector, the affected employees are those found with unpaid Value Added Tax (VAT) obligations.
The unpaid dues may have arisen either from payments for private consultancies outside their workplace or directorships in personal companies that are not up to date with their taxes.
Even as the legality of the move is under question, employers have been asked to inform the affected employees in their companies.
One such employer's message reported by the Business Daily stated: "Please note that your KRA pin has been suspended and I, therefore, cannot file August 2017 pay as you earn (PAYE) tax in iTax".
The taxman received overwhelming inquiries on Wednesday after announcing that 95,000 PINs had been de-listed.
Read More: 95,000 Kenyans Lose KRA Pins in Major Crackdown
Other transactions that the 95,000 Kenyans will be barred from conducting due to the inactive PIN include registration of land titles, approval of development plans, underwriting of insurance policies, customs clearing and payment of deposits for power connections.
In addition, they are barred from applying for government tenders, motor vehicle registration, transfer and licensing, registration of business names and companies as well as opening accounts with financial institutions.
