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Originally published by Kenyanstop
February 3, 2026
10h ago
Kenyans Warned as KRA Begins Crackdown on Certain Businesses

The move is aimed at curbing incidents such as tax evasion, validating businesses in real time and reducing frequent revenue shortfalls...
✨ Key Highlights
KPMG has issued a warning to businesses regarding heightened scrutiny from the Kenya Revenue Authority (KRA) on the use of the Electronic Tax Invoice Management System (eTIMS). The KRA is transitioning to continuous, real-time transaction scrutiny, moving away from summary-based tax reporting.
- KPMG stated that business expenses not supported by compliant eTIMS invoices will be automatically disallowed, even if genuine.
- The audit firm emphasized that eTIMS, initially a VAT compliance tool, is now a central pillar of income tax enforcement.
- Compliance with eTIMS is mandatory for all companies, partnerships, sole proprietors, professionals, and rental income earners in Kenya.
- Businesses are advised to conduct early and regular matches between accounting records and eTIMS data for sales, purchases, withholding tax, and imports to avoid penalties and interest.
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