KRA now blocks payments to tax-dodging State contractors

KRA has integrated eTIMS with IFMIS to automatically verify government suppliers’ tax compliance, potentially blocking payments where invoices do not match tax records...

✨ Key Highlights

The Kenya Revenue Authority (KRA) has integrated its electronic tax invoicing system (eTIMS) with the government's central payment platform (IFMIS), enabling it to block payments to state contractors who are not tax compliant.

Suppliers will now be blocked from receiving state payments if they do not generate a valid eTIMS invoice matching their tax records.
This integration, announced by the KRA and the National Treasury, provides the taxman with real-time visibility into public procurement transactions worth hundreds of billions of shillings.
The move aims to curb tax evasion and corruption within government procurement, a sector historically used by contractors to avoid paying taxes on substantial income.