VAT compliance a necessity for fair business environment, not burden
By George Obell NAIROBI, Kenya, Nov 7 - Tax compliance is the fundamental pillar of a country’s healthy business environment and national development. Kenya breaking news | Kenya news today |..
✨ Key Highlights
Kenya Revenue Authority (KRA) is introducing a Business Tax Compliance Certificate to combat widespread VAT non-compliance and foster a fair business environment. This new certificate will specifically require adherence to all tax regulations, including the adoption of the Electronic Tax Invoice Management System (eTIMS), to address a significant revenue shortfall and level the playing field for businesses.
- VAT revenue in the 2021/22 financial year underperformed by 39.8 percent, a gap KRA aims to reduce to 19.8 percent.
- Only about 508,000 businesses have so far onboarded eTIMS, despite it being a legal requirement.
- The new certificate will differentiate fully compliant businesses from those that have previously obtained Tax Compliance Certificates (TCCs) despite non-compliance.
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Kenyan Businesses Face Compliance Demands, Environmental Scrutiny, and Legal Disputes - November 2025
The Kenya Revenue Authority (KRA) is introducing a Business Tax Compliance Certificate to address widespread VAT non-compliance, requiring businesses to adopt the Electronic Tax Invoice Management System (eTIMS). In the energy sector, Gitson Energy Limited has formally requested NEMA, on November 1, 2025, to provide full disclosure of all Environmental Impact Assessment (EIA) studies and licenses for power projects in Marsabit County, citing compliance concerns. Meanwhile, Uchumi Supermarkets faces a new threat to its recovery plan as a High Court ruling has stalled the sale of its 17-acre Kasarani property, which is a crucial part of its Company Voluntary Arrangement (CVA).
