KRA will start validating all income and expense declarations from January 1, 2026. Verification will rely on TIMS/eTIMS invoices, withholding tax records, and customs import data.
The Kenya Revenue Authority (KRA) has announced that beginning January 1, 2026, it will fully transition to digital verification of tax returns. The system will apply to returns for the 2025 year of income and will affect both individuals and companies.
Under the new framework, all income and expenses declared on iTax must match digital records. These include TIMS/eTIMS invoices, withholding tax remittances, and import entries from customs systems.
According to KRA, all expenses claimed during filing must be supported by valid electronic tax invoices transmitted with the buyer’s KRA PIN.
The authority advised taxpayers to reconcile records in advance and obtain their annual income and expense schedules to avoid disputes during the validation stage.
“Taxpayers are encouraged to request TIMS/eTIMS schedules of their current annual income and expenses,” read the public notice issued on November 7, 2025.
KRA stated that the new system aims to enhance fairness in tax administration and reduce cases of inflated expense claims and undeclared income.
The Commissioner for Micro and Small Taxpayers said the changes will strengthen accountability while minimising disputes during tax assessments.
The announcement comes after KRA reported improved performance in the 2024/2025 financial year, collecting KSh 2.571 trillion, surpassing its revised target of KSh 2.555 trillion.
Domestic revenue grew to KSh 1.688 trillion, driven by: Expansion of the taxpayer base, Rollout of eTIMS, Integration with government and private systems, Enhanced debt settlement via Alternative Dispute Resolution (ADR)
Additionally, anti-corruption measures, including the iWhistle platform, recovered KSh 6.8 billion, signalling growing efforts to seal revenue leakages.
