How 2026 tax changes will affect businesses

The KRA will deploy the VAT Special Table to enforce this regime, and this includes deactivating eTIMS/TIMS devices at will, withdrawal of tax compliance, deactivation of VAT obligation, and even freezing of both suppliers and bank accounts.

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The Kenya Revenue Authority’s (KRA) public notice dated November 7, which will take effect next January, introduces far-reaching tax compliance changes in business operations.

Under the new dispensation, any business expense you wish to deduct must be supported by an eTIMS/TIMS electronic tax invoice. If the invoice is missing, incomplete, or not issued electronically, KRA will tax you on the full amount.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.