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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.
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.