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Automation redefining tax compliance
Initially, eTIMS compliance was limited to VAT-registered taxpayers. However, legislative changes under the Finance Act 2023 and the Tax Procedures (Electronic Tax Invoice) Regulations, 2024 expanded the scope significantly.
Kenya’s tax system is entering a new era of automation. On November 7, the Kenya Revenue Authority (KRA) announced that from 2026, it will automatically verify tax returns against eTIMS invoices, withholding tax (WHT) filings and customs records to ensure that expenses and incomes match official data.
On November 12, KRA further announced that effective December 1, all bank guarantees shall be executed exclusively through the integrated Customs Management System (iCMS).