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.