Kenya Revenue Authority Tightens Tax Compliance Rules with New eTIMS and VAT Requirements

The Kenya Revenue Authority (KRA) has rolled out a new set of requirements for taxpayers seeking Tax Compliance Certificates (TCCs), introducing stricter measures aimed at improving compliance and curbing tax evasion across the country.

Under the new framework, KRA has linked the issuance of the TCC to compliance with the electronic Tax Invoice Management System (eTIMS). This means that all businesses and individuals earning income beyond regular employment must be fully registered and compliant with eTIMS before their TCC applications can be approved. Businesses that fail to integrate with the system will no longer qualify for a certificate until they do.

Beyond eTIMS, the updated requirements reinforce the importance of timely tax filing and payment. Both individuals and companies are now required to file all applicable tax returns before the deadlines. Taxpayers with outstanding liabilities must either clear their dues or formalize an approved payment plan with KRA. Only those with approved payment arrangements will be allowed to proceed with their TCC applications through the iTax platform.

Another critical element of the reform focuses on Value Added Tax (VAT) compliance, particularly for entities listed under the VAT Special Table—a mechanism designed to track and monitor VAT payment patterns. Registered VAT businesses must ensure they meet all VAT obligations, as KRA intensifies efforts to combat fraudulent claims and missing trader schemes. Any company linked to non-compliant or fraudulent suppliers may face restrictions in obtaining a TCC until the irregularities are resolved.

Despite the tighter rules, the TCC application process remains fully digital via the iTax portal, allowing applicants to submit and verify their certificates online. However, KRA emphasizes that full compliance with all tax obligations—including eTIMS registration, timely filing, and VAT adherence—is now a prerequisite for approval.

The enhanced compliance framework reflects KRA’s broader strategy to strengthen tax accountability, improve revenue collection, and close loopholes in the tax system. While the new measures may present additional administrative steps for taxpayers, they are intended to promote fairness, transparency, and a stronger culture of voluntary tax compliance in Kenya.

Taxpayers are therefore encouraged to review their current compliance status, align with the new eTIMS requirements, and ensure all obligations are up to date before applying for a Tax Compliance Certificate.