Gweth,Onguka & Associates

08/04/2026

🚨 Top Triggers for KRA Audits in 2026 – Stay Ahead or Get Flagged 🚨

KRA is no longer waiting for year-end reviews. The system is now real-time, automated, and data-driven — meaning errors are flagged instantly, even before a human looks at your return.

Here’s what’s putting businesses on KRA’s radar in 2026 👇

1️⃣ No eTIMS, No Expense Claim
If your expenses aren’t supported by a valid eTIMS invoice, they simply don’t exist in KRA’s eyes.

👉 Claiming unverifiable expenses = automatic red flag
👉 No digital trail = no tax deduction

2️⃣ Data Mismatches (You vs The System)
KRA now sees almost everything.

✔️ M-Pesa & bank transactions
✔️ Import & customs records
✔️ Withholding tax certificates

👉 If your declared figures don’t match these systems, expect questions.

3️⃣ High Activity, But Filing Nil or Losses
Running a busy business but filing nil returns?

🚩 That’s one of the fastest ways to trigger an audit.

If your cash flow shows growth but your returns show losses, the system will notice.

4️⃣ Frequent or Large Refund Claims
Yes, you’re entitled to refunds — but:

👉 Large or repeated VAT refund claims often attract deeper scrutiny
👉 Expect delays and possible audits before approval

5️⃣ Payroll & Statutory Inconsistencies
KRA now cross-checks everything automatically.

✔️ PAYE filings
✔️ Financial statements
✔️ NSSF & SHA contributions

👉 Even small differences can raise compliance flags.

6️⃣ Whistleblowers Are Watching
Through the iWhistle platform, anyone can report non-compliance.

👀 Employees
👀 Competitors
👀 Third parties

👉 One report can trigger an instant investigation.

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✅ How to Stay Safe in 2026

✔️ Reconcile VAT and income tax monthly
✔️ Only work with eTIMS-compliant suppliers
✔️ Do a tax health check before filing

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⚠️ Bottom line:
KRA systems are smarter, faster, and always watching.

Don’t wait to be flagged — **fix your compliance early.**

💬 Need help reviewing your books or cleaning up your tax position? Reach out before KRA does.

01/04/2026

🚨 KRA Audits in 2026: What’s Putting Businesses on the Radar?

Tax compliance in Kenya has changed—big time. The Kenya Revenue Authority is no longer just reviewing returns after submission. Today, their systems are working in real-time, flagging issues instantly using smart data and automation.

If you’re running a business, here’s what you need to watch out for 👇

⚠️ 1. No eTIMS Invoice = No Expense Claim

If you’re claiming expenses without a valid eTIMS invoice, that’s a direct red flag.

👉 KRA systems now automatically verify expenses digitally
👉 If it’s not in their system, it’s treated as non-deductible

🔗 2. Your Data Must Match Everywhere

KRA now sees almost everything—bank transactions, mobile money, imports, and withholding tax records.

🚩 Red flag:

Your sales don’t match bank or M-Pesa records

Import costs don’t align with customs data

Income declared doesn’t match WHT certificates

📉 3. Filing Nil Returns with Active Cash Flow

Still filing nil or losses while money is clearly moving? That’s risky.

🚩 Red flag:

High transactions + zero income declared

Reporting losses while your business is visibly growing

💸 4. Frequent or Large Refund Claims

Claiming VAT refunds isn’t wrong—but doing it often or in large amounts attracts attention.

👉 Expect delays or deeper audits before approval

👥 5. Payroll & Statutory Mismatches

Your PAYE, salaries, and statutory deductions must align perfectly.

🚩 Red flag:

PAYE filings ≠ financial statements

NSSF/SHIF remittances don’t match payroll

Even small inconsistencies can trigger a system alert.

🕵️ 6. Whistleblowers Are Watching

Through the iWhistle platform, reports from employees, competitors, or third parties can trigger instant investigations.

✅ How to Stay Safe in 2026

✔️ Reconcile VAT and income tax every month
✔️ Only deal with eTIMS-compliant suppliers
✔️ Do a tax health check before filing
✔️ Work with a professional to review your numbers

💡 Bottom line:
KRA isn’t waiting anymore—the system flags issues immediately.

👉 Don’t wait for an audit notice. Fix the gaps early.

📩 Need help reviewing your books or cleaning up your tax position? Reach out before it becomes a costly problem.

25/03/2026

Understanding eTIMS doesn’t have to be complicated.
Join our guided virtual sessions and gain practical clarity on the simplified solution, online portal, and eClient platform—step by step.

Ndio hizi links 👇

eTIMs Simplified Solution
Tuesday, 24th March 2026
10:00 a.m. – 11:30 a.m.
Registration Link: https://kra.webex.com/weblink/register/r0585a519ca57f014045e47e933033ee0

eTIMs Online Portal Solution
Wednesday, 25th March 2026
10:00 a.m. – 11:30 a.m.
Registration Link: https://kra.webex.com/weblink/register/r05119feed78277cdc417f9bb5616cdfd

eTIMs eClient Solution
Thursday, 26th March 2026
10:00 a.m. – 11:30 a.m.
Registration Link: https://kra.webex.com/weblink/register/r178e99a2d293356daa43dbc9cb57e985

See you soon!

05/02/2026

04/02/2026

🚨 KRA Tightens the Net: eTIMS Is Now a Full Income Tax Enforcement Tool

Non-compliant businesses have been put on notice as the Kenya Revenue Authority (KRA) escalates its enforcement of the Electronic Tax Invoice Management System (eTIMS).

KRA is abandoning traditional summary-based tax reporting and shifting to continuous, real-time transaction monitoring. This new approach relies on automated systems that algorithmically match income tax returns against multiple electronic data sources.

GWETH ONGUKA & Associates has warned that under this enforcement model, business expenses not supported by compliant eTIMS invoices will be automatically disallowed — even where the costs were genuine and properly incurred.

“What started as a VAT compliance tool has now evolved into a central control pillar of income tax enforcement,”

⚠️ What This Means for Businesses

Expenses without valid eTIMS invoices may be administratively disallowed

Disallowed costs can lead to additional tax, penalties, and interest

The rule applies even if the expense was real and business-related

Only statutory exemptions and formal objections or appeals may offer relief

📌 Who Must Comply?

eTIMS compliance is mandatory for:

Companies

Partnerships

Sole proprietors

Professionals and consultants

Rental income earners

✅ How to Stay Safe

To avoid costly surprises, businesses are advised to:

Conduct early and regular reconciliations between accounting records and eTIMS data

Match sales, purchases, imports, and withholding tax data consistently

Identify gaps, timing differences, and inconsistencies early

Embed eTIMS compliance into procurement, contracting, and payment processes

Ensure both finance and non-finance teams understand when eTIMS invoicing is mandatory

🔍 Bottom Line

eTIMS is no longer optional — and no longer just about VAT.
Unsupported expenses are now a direct tax risk.

Compliance today isn’t just good practice — it’s protection against penalties tomorrow.

29/01/2026

What KRA’s New System Means for Freelancers, Consultants & Professionals

If you earn a living as a consultant, freelancer, trainer, or independent professional, KRA is watching more closely than ever.

The Kenya Revenue Authority has stepped up enforcement using automated audits and third-party data matching. So far, over 392,000 individuals and businesses have been flagged, with unpaid taxes estimated at KSh 759.7 billion.

Self-employed professionals are among the most affected as KRA tightens controls ahead of wider tax administration reforms expected in 2026.

Why Consultants Are Under the Spotlight

The main issue is mismatches between declared income and withholding tax records.

Here’s how it works:

When a client pays you for professional services, they are required to deduct withholding tax and remit it directly to KRA.

That payment creates a digital record in KRA’s system.

KRA now compares these records with what you declare in your annual tax return.

If you:

File a nil return,

Under-declare your income, or

Fail to report consultancy fees already subjected to withholding tax,

…the system automatically flags your account. This can lead to audits, penalties, and enforcement actions — including bank account freezes or asset seizures.

Professionals working with multiple clients or in the gig economy are especially exposed, as these income streams have historically been under-declared.

Bottom line: Proper reporting is no longer optional. If you’re a freelancer or consultant, make sure your income declarations fully align with withholding tax records. Compliance today can save you serious trouble tomorrow.

28/01/2026

KRA has commenced validation of income and expenses declared for the 2025 tax year using eTIMS data, withholding tax records, and customs information.
Expenses not supported by valid eTIMS invoices (unless legally exempt) risk being disallowed and may trigger audits and additional assessments.
Taxpayers are advised to ensure all invoices are accurate, properly transmitted with the correct buyer’s PIN, and well organized to substantiate expense claims and avoid disputes with KRA.
Proactive compliance today helps prevent penalties, interest, and enforcement actions tomorrow

20/11/2025

Validation of Income and Expenses
In an earlier notice dated November 7, 2025, the Authority announced that, beginning January 1, 2026, it will start validating income and expense declarations for both individual and corporate tax returns.

The verification process will rely on the following data sources:

TIMS/eTIMS invoices

Withholding tax gross amounts

Customs import records

Validation will occur when filing the 2025 income year return on iTax.

KRA emphasised that all declared income and expenses must be supported by valid eTIMS invoices, correctly transmitted with the purchaser’s PIN where applicable. Exceptions will apply as provided under Section 23A of the Tax Procedures Act and the Electronic Tax Invoice Regulations, 2024.

Taxpayers are encouraged to request their annual TIMS/eTIMS schedules from their respective account managers to ensure accuracy before filing.

The Authority invited stakeholders to share feedback to support a smooth transition to the new validation framework.

06/11/2025

Amend details za Individual PIN yako in just 6 easy steps. Click the link for the guide na kila kitu utahitaji to make the process seamless!

https://kra.go.ke/images/publications/GUIDE-FOR-PIN-AMENDMENT-REQUIREMENTS--INDIVIDUAL.pdf

02/11/2025

Legacies are not built in boardrooms. They’re built in daily decisions — the ones that seem too small to matter.

Filing on time. Recording faithfully. Asking for receipts. Keeping things in order, even when no one will ever thank you for it. These are the quiet bricks of greatness.

We’ve seen how small disciplines grow into monumental stability. A well-kept ledger today becomes generational trust tomorrow.

The world may not notice your precision, but your future will. Your children, your partners, your clients — they will all inherit the fruit of your diligence.

Financial order is not just an accounting principle; it’s an act of respect — for yourself, your work, and the people who depend on you.

Because legacies aren’t written in wills. They’re written in how faithfully we manage what’s in our hands today.