KRA Updates You Can’t Ignore: What They Mean for Your Business

If you thought tax season was stressful before, KRA is about to make it even more… precise. But don’t worry, we’ve got your back. There are two major updates every business owner and taxpayer needs to know about. And trust me, understanding these now will save you headaches (and maybe even penalties) later.

1. Validation of Income & Expenses in Tax Returns

Starting 1st January 2026, KRA will validate every income and expense declared in both individual and business tax returns using:

TIMS/eTIMS invoices
Withholding Income Tax records
Import data from customs systems

So what does this mean for businesses in Kenya?
If your records are not properly documented and tied to the correct PIN, KRA may flag them. This is no longer a “hope for the best” situation.

If your 2025 tax return is coming up, you need to make sure that:

All electronic invoices are valid and correctly transmitted
Confirm TIMS/eTIMS schedules match your records
Double-check everything before submitting via iTax

At Adamjee Auditors LLP, we help businesses reconcile eTIMS data, review tax records, and validate returns, so you can file confidently without errors. Think of us as your safety net, catching errors before they cause problems.

2. The New Automated Payment Plan (APP)

Here is some good news KRA also understands that paying taxes in one lump sum isn’t always feasible. Starting November 2025, they’ve introduced an Automated Payment Plan (APP) that allows taxpayers to settle outstanding tax liabilities, including principal, penalties, and interest in instalments up to six months.

To qualify you need:

A valid KRA PIN and updated iTax registration
Confirmed tax liability not under appeal
A proven genuine inability to pay the full amount at once
Submission of a proposed instalment schedule via iTax

But here is the kicker, if you miss a payment KRA may terminate your plan and take action, including revocation of your Tax Compliance Certificate.

We help businesses structure their APP correctly, meet compliance requirements, and avoid penalties, giving you peace of mind. Don’t wait until KRA comes knocking, let us help you make tax compliance simple.

Talk to Us

Trying to navigate this alone is a risk. Partnering with experts is a strategy. Ensure your business is not just compliant, but competitive. Have questions or need guidance on KRA compliance, tax validation, or the Automated Payment Plan? We’re here to help.

Get Expert Financial & Audit Guidance Today

Navigating Kenya’s financial and regulatory landscape can be complex. Don’t leave your company’s compliance to chance. Let our experts at Adamjee Auditors provide the clarity and support you need.

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