Kenyan manufacturers are facing significant challenges in complying with the Kenya Revenue Authority's (KRA) new eTIMS system, leading to increased tax risks.

• Key compliance gaps include real-time invoice validation requirements, system downtimes, and integration difficulties with existing accounting systems.
• The Kenya Association of Manufacturers (KAM), in partnership with DigiTax, hosted a seminar highlighting these issues, with Chief Operating Officer Thuku wa Thuku emphasizing low awareness of compliance repercussions.
• Failure to ensure eTIMS compliance means companies risk being unable to claim input VAT or deduct legitimate business expenses, potentially increasing their tax liabilities.