President Uhuru Kenyatta has directed the Kenya Kenya Revenue Authority to ensure that high-net-worth individuals whose lifestyles are not reflective of the taxes they pay, if any, must show the source of their wealth and pay their dues.
Mr Kenyatta said this was in line with his administration's resolve to widen the tax space and find more ways to bring in more Kenyans into the taxman's net.
"Traders operating fake electronic tax registers and pocketing the VAT should also be brought to book. Additionally, criminal cartels smuggling in imported taxable goods through our ports ought to be easily detected and contained," he said on Wednesday.
The President was speaking on Wednesday in Nairobi at the KRA 2017/18 Distinguished Taxpayers Awards ceremony.
But he also warned tax collectors not to use their positions to engage in extortion or promote tax evasion.
"The law must reflect the seriousness of tax collection and the consequences of default. There should be no space for tax evaders in Kenya," Mr Kenyatta said.
Wealth-X, the firm that publishes the annual World Utra-Wealth Report, says the number of Kenya's ultra-rich, defined as people worth $30 million (Sh3 billion) or more, grew by 11.7 per cent last year, ahead of India, Hong Kong and the United States.
However, no actual figure of the ultra-rich is given for Kenya which has in the past five years been ranked among the countries that are creating the super-rich at the highest rate, despite an economic slowdown.