The Kenya Revenue Authority (KRA) has announced a major shift in tax administration, confirming that from January 1, 2026, it will begin validating all income and expenses declared in both individual and corporate tax returns using digital data sources.
In a public notice issued on November 7, 2025, KRA said the verification process will rely on TIMS/eTIMS invoices, withholding income tax records, and import data from customs systems. The validation will begin once taxpayers file their 2025 year of income returns through the iTax platform.
All declared income and expenses must be supported by valid electronic tax invoices transmitted with buyers’ PINs, in accordance with the Tax Procedures (Electronic Tax Invoice) Regulations, 2024.
KRA urged taxpayers to reconcile their electronic records ahead of filing. “Taxpayers are encouraged to request TIMS/eTIMS schedules of their current annual income and expenses,” the notice read.
The Commissioner for Micro and Small Taxpayers said the new framework seeks to enhance transparency, fairness, and accountability while minimizing disputes. The system also reflects KRA’s wider push to fully digitize tax operations.
The announcement came as KRA reported surpassing its revenue collection target for the 2024/2025 financial year, collecting KSh 2.571 trillion against a revised target of KSh 2.555 trillion, a 6.8 per cent rise from the previous year.
Domestic revenue reached KSh 1.688 trillion, growing by 4.8 per cent. KRA credited the performance to the expansion of the tax base, which added 1.2 million active taxpayers, the rollout of eTIMS, integration with government and private systems, and enhanced debt collection through the Alternative Dispute Resolution (ADR) framework.
Anti-corruption initiatives, including the iWhistle platform, helped recover KSh 6.8 billion, underscoring the authority’s push for greater integrity and compliance in Kenya’s evolving tax landscape.
