LMM Financial Partners

17/01/2026

⚠️ BUSINESS OWNERS: KRA Reverse Invoicing Explained Simply

Do you buy goods or services from:
• Fundis
• Casual workers
• Small suppliers
• Anyone who can’t issue an eTIMS invoice?

👉 KRA now requires YOU to create the invoice.

✅ This is called Reverse Invoicing
✅ You raise the invoice through eTIMS
✅ It protects your expense during audits

🚫 M-PESA messages alone are no longer enough
🚫 Cash receipts without eTIMS = tax risk

📌 Remember:
Reverse invoicing helps you support the expense, but you can’t claim VAT on it.

No invoice from supplier? You must generate one.

Stay compliant. Avoid penalties.

16/01/2026

Is Rent Income also subject to eTims?The answer is...

Yes — rent is now effectively subject to eTIMS requirements in Kenya under the new tax compliance regime. Here’s what’s new and what it means:

📌 1. Rent Income & eTIMS

The Kenya Revenue Authority (KRA) has made it clear that individuals earning rental income must be onboarded onto eTIMS and issue electronic tax invoices — including for rent — if they want to remain compliant, especially when applying for a Tax Compliance Certificate (TCC).

📌 2. Why Rent Falls Under eTIMS

According to KRA, all persons engaged in business must issue eTIMS electronic tax invoices for transactions related to business income — and this now explicitly includes Monthly Rental Income (MRI).

📌 3. Tax Compliance Certificate (TCC) Requirement

If you earn rental income (e.g., from letting out property), KRA has stated that to be issued a TCC, you must use eTIMS to generate invoices for that rental income.

📌 4. Tax Return Validation (Effective Jan 2026)

From 1 January 2026, KRA will validate income and expenses declared in tax returns against eTIMS-generated data. This means:

Rental income you declare on your return must link to eTIMS invoices in KRA’s system.

Expenses you want to claim (if allowed) also need eTIMS invoices.

📌 5. Exemptions

There are limited exceptions under the Tax Procedures Act and related regulations, but rental income is not generally exempt from eTIMS if you are required to invoice and report it as business income.

💡 Key Takeaway

Yes — rent (as business/rental income) is now covered by eTIMS requirements. If you are collecting rent professionally or regularly (beyond informal personal arrangements), you’ll need to:

Register for eTIMS with your KRA PIN.

Issue eTIMS electronic tax invoices for rent collected.

Ensure those invoices are reflected in your KRA data — especially if you want tax compliance status or to file returns correctly.

15/01/2026

Are ETIMS receipts/invoices the same as ETR receipts/invoices
Here is the clear distinction in Kenya’s tax system:

1. ETR Receipts/Invoices (Old System)
ETR = Electronic Tax Register

👍This was the old VAT control system.

How it worked:

You used a physical ETR machine
✅It printed fiscal receipts
✅It only captured basic sales info
✅Data was not fully real-time to KRA

Key limitations:

✅Only worked well for VAT reporting
✅Could be manipulated
✅Could not properly track expenses, inventory, withholding, etc.

2. eTIMS Receipts/Invoices (Current System)
eTIMS = electronic Tax Invoice Management System

This is the new national digital tax infrastructure (and it is compulsory).

eTims does much more than ETR:

🎯Important: From 2024 onward, only eTIMS-generated receipts/invoices are recognized as valid tax expense proof.
🎯If your supplier is still giving you “ETR receipts”, your expense is technically non-deductible.

Why This Matters for Your Business
This is why KRA is silently forcing businesses to:

✅Shift from informal suppliers
✅Stop cash purchases
✅Move to postpaid corporate services
✅Buy only from eTIMS-compliant vendors

🎯Because every expense must now be digitally verifiable.

Bottom line:
ETR was a receipt printer. eTIMS is a full digital tax surveillance and compliance system.

15/01/2026

The Silent Business Trap Most SMEs Are Falling Into (eTIMS Edition)

Most people think eTIMS is about receipts.

It’s not.

It is quietly reprogramming how businesses must spend money in Kenya.
And anyone still operating informally is unknowingly creating future tax penalties.

If your expense cannot be verified through eTIMS, KRA can legally ignore it.
Which means:
👉 You still spent the money
👉 But you’ll still pay tax on it

Here’s the uncomfortable shift happening:

OLD WAY (RISKY) NEW WAY (SAFE)
Airtime & Data Bundles Postpaid Business Lines
Cash Uber/Bolt Corporate Ride Accounts
Boda Deliveries Registered Courier Companies
Cash Fuel Fuel Cards
Token Electricity Postpaid Meter
Cheap “Plug” Suppliers Registered Suppliers with KRA PIN
Casual Fundis & Cleaners Contracted / Registered Providers
Facebook & IG Sellers Only eTIMS-Registered Sellers
Internet Bundles Fibre Business Contracts

Why this matters:
Any expense without an eTIMS invoice can be disallowed.
Disallowed expenses = Higher taxes. Lower profits.

The informal shortcut era is ending.
Compliance is becoming a profit protection strategy.

📌 Save this.
📌 Share with a business owner who is still “just paying and moving on.”

14/01/2026

🚨 EMPLOYERS — THIS IS YOUR MID-MONTH REMINDER! 🚨
The 15th of every month is not just another date on the calendar.
It is the official deadline for remitting HELB deductions for your employees.
📌 What does this mean?
All HELB loan deductions made from your employees’ salaries must be submitted to HELB by the 15th of the following month.

09/12/2025

📌 DECEMBER 2025 TAX DEADLINES REMINDER – KENYA 🇰🇪
As we close the year, here’s a quick compliance checklist to help you stay tax-ready and avoid penalties:
🔹 1st Instalment Tax – FY ending Aug 2026
🗓️ Due: 20 Dec 2025
🔹 2nd Instalment Tax – FY ending Jun 2026
🗓️ Due: 20 Dec 2025
🔹 3rd Instalment Tax – FY ending Mar 2026
🗓️ Due: 20 Dec 2025
🔹 4th Instalment Tax – FY ending Dec 2025
🗓️ Due: 20 Dec 2025
🔹 VAT Return & Payment – Nov 2025
🗓️ Due: 20 Dec 2025
🔹 PAYE Return & Payment – Nov 2025
🗓️ Due: 9 Dec 2025
🔹 Balance of Tax – FY ending Aug 2025
🗓️ Due: 30 Dec 2025
🔹 PAYE on Directors’ Bonus – Aug 2025 year-end companies
🗓️ Due: Per issuance date
🔹 Withholding Income Tax & Withholding VAT
🗓️ Due: Within 5 working days from payment
🔹 Advance Tax – FY ending Nov 2026
🗓️ Due this month
🔹 Self-Assessment Tax Return – Jun 2025 year-end companies
🗓️ Due this month
✔️ Stay compliant
✔️ Avoid penalties
✔️ Plan ahead before the holiday break 🎄
💬 Need help with filing or tax support? We’re here for you!
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02/12/2025

Good Morning from LMM Financial Partners!

A new day is a chance to stay ahead—especially when it comes to your taxes.
From compliance to tax planning, our team ensures you remain aligned with the latest regulations while optimizing your obligations.

Start your day knowing your tax matters are handled with precision and expertise.

✔ Tax Compliance
✔ Tax Planning
✔ KRA Support
✔ Business & Personal Tax Guidance

28/11/2025

🚀 Stay Relevant in Finance: Master This One Skill

In today’s fast-changing business world, finance is no longer just about numbers. Routine tasks are being automated, but one skill remains irreplaceable:

💡 Digital & Data Analytics Literacy

Why it matters:

Automation is taking over repetitive tasks.

Businesses rely on data-driven insights for strategic decisions.

Finance professionals are expected to drive strategy, not just report numbers.

With tools like Power BI, Python, Excel automation, ERP analytics, and AI, finance pros can:
✅ Spot risks early
✅ Improve forecasting accuracy
✅ Guide business strategy
✅ Streamline workflows

Bottom line: Finance professionals who master data analytics don’t just stay relevant — they become indispensable.

28/11/2025

27/11/2025

At LMM Financial Partners, we wish you a fruitful day.