The Kenya Revenue Authority (KRA) has announced a major shift in its tax compliance framework, confirming that it will begin validating income and expenses declared in tax returns starting January 1, 2026.
The move targets both individual and non-individual taxpayers, with the goal of improving accuracy, transparency, and audit efficiency across Kenya’s tax system.
What’s Changing?
According to a public notice issued on November 7, 2025, KRA will cross-check tax declarations for the 2025 year of income against three key data sources:
- TIMS/eTIMS invoices
- Withholding income tax gross amounts
- Import records from customs systems
These checks will be triggered when taxpayers file their 2025 returns via the iTax platform, making it essential for all declarations to be backed by valid electronic tax invoices. Invoices must be correctly transmitted and include the buyer’s PIN, where applicable.
“Effective 1st January 2026, KRA will begin validating income and expenses declared in both individual and non-individual income tax returns,” the notice reads in part.
The validation process will be governed by Section 23A of the Tax Procedures Act, Cap 469B, and the Tax Procedures (Electronic Tax Invoice) Regulations, 2024, with exemptions applying only in specific cases.
📢 Public Notice: Validation of Income and Expenses in the Income Tax Returns
Starting 1st Jan 2026, KRA will validate income & expenses declared in income tax returns (for the year 2025) against:
a) TIMS/eTIMS invoices
b) Withholding tax data
c) Customs import records pic.twitter.com/8Glpa0Afgv— Kenya Revenue Authority (@KRACorporate) November 7, 2025
What Taxpayers Should Do Now
To avoid filing delays or rejections, KRA is urging taxpayers to:
- Request TIMS/eTIMS schedules from their account managers
- Reconcile bookkeeping records with KRA’s validation data
- Submit feedback to help refine the rollout process
KRA emphasised that unverified payments, those not received, credited, or validated in official accounts, will not be recognised. This underscores the importance of accurate and timely submissions ahead of the 2026 compliance shift.
Why It Matters
This update is part of KRA’s broader digital modernisation strategy, aimed at:
- Reducing tax fraud and misreporting
- Enhancing taxpayer confidence
- Streamlining audits and assessments
- Supporting long-term fiscal transparency
For personal finance stakeholders, the new system offers a clearer path to compliant, data-backed tax filing, while reinforcing the need for digital invoice adoption and recordkeeping discipline.
