Absa to fund acquisition of digital tax registers by SMEs

Absa Bank Kenya

Absa head office in Westlands, Nairobi. 

Photo credit: File | Nation Media Group

The Absa Bank Kenya and Interswitch have signed an agreement that will see the payments and infrastructure firm offer technical support to small and medium enterprises to enable them to acquire the Kenya Revenue Authority (KRA) Online Tax Invoice Management System (TIMS) device.

The lender’s business banking director Elizabeth Wasunna said the partnership supports the government’s plan to increase revenue collections while enabling SME customers to comply with the KRA requirements without straining their cash flows, given the difficult operating environment.

“We fully understand the difficult times that our SME customers are facing due to the challenging operating landscape, and as their partner for growth, we are committed to continuing to walk the journey with them during this tough phase as the economy begins to recover from the pandemic’s impact and a general slowdown in the macroeconomic circumstances,” said Ms Wasunna.

Daniel Kiriungi from Interswitch said: “We believe there is no way businesses can achieve their potential without complying with the necessary regulatory requirements.

“This partnership is in line with our clear goal of empowering businesses to grow to their level best and it’s a convergence of our purpose to that of Absa of ‘Bringing Possibilities to Life.”

The taxman last year implemented the Electronic Tax Invoice requirements, which will replace the current offline electronic tax registers. All value-added tax-listed businesses are expected to comply with the VAT (Electronic Tax Invoice) Regulations, 2020 regarding the implementation of the electronic tax invoice by November 30.

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