29/01/2026
I followed the KRA virtual sensitisation meeting held on Friday, 23/01/2026. Here is what I captured for every taxpayer and advisor in Kenya.
1. The 2025 Tax Year: Your Final, Formal Leeway
For returns filed this year (2026) covering the 2025 income year, KRA has provided a crucial concession. A dedicated “Non-eTIMS” expense line will be available in the iTax return. This is your last chance to claim legitimate business expenses that, for whatever reason, weren’t supported by an eTIMS invoice during that period.
Action Point: Meticulously review your 2025 expenses. Use this line strategically. It is a transitional bridge that will almost certainly be gone for the 2026 tax year.
2. The "Hard" Deadline is 2027
While the system validation went live on January 1, 2026, the Commissioner’s expectation is crystal clear: Full compliance is required by the time you file your 2026 returns in 2027. The transitional tolerance will be "greatly reduced." The law (Section 16(1)(c)) has been in place since 2024; enforcement is now automated.
3. The Non-Negotiable Business Rule: “No eTIMS, No Payment”
The most practical advice from KRA is to embed compliance into your process. Your procurement and finance teams must tie payment approvals to the receipt of a valid eTIMS invoice. Do not pay first and chase compliance later. This protects your deductions.
4. You Are Your Supply Chain’s Keeper
Your tax deduction now depends on your supplier’s compliance. Proactively engage your MSME suppliers. Guide them to the free or low-cost eTIMS solutions, including the buyer-initiated invoice option. It’s in your direct financial interest to have a compliant supply chain.
5. Leverage the Enhanced iTax
Use the auto-populated Excel return. It prefills data (employment income, installments, levies) and runs a validation check against transmitted TIMS/eTIMS data, giving you a clearer picture before submission.
6. Know What’s Exempt
Not everything requires eTIMS. Key exemptions include financial institution charges, payments to non-residents without a Kenyan PE, and airline passenger tickets. Know the list to avoid unnecessary bottlenecks.
[Link to the official KRA sensitisation session: https://www.youtube.com/watch?v=jNZZ5s5Udts]
