The Kenya Revenue Authority (KRA) has announced a major update to its tax compliance framework, confirming that it will begin validating income and expenses declared in tax returns starting January 1, 2026.
According to the Authority, the validation will apply to returns for the 2025 year of income and is expected to enhance accuracy and transparency in tax declarations for both individual and non-individual taxpayers.
“Kenya Revenue Authority (KRA) wishes to inform taxpayers, stakeholders and the public that, effective 1st January 2026, it will begin validating income and expenses declared in both individual and non-individual income tax returns,” read the statement in part.
According to the noticed shared by KRA on November 7, 2025, the validation process will involve cross-checking information declared in tax returns against three main data sources. These are:
TIMS/eTIMS invoices, Withholding income tax gross amounts, and Import records available in customs systems.
The checks will be conducted when taxpayers submit their 2025 returns through the iTax platform.
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KRA stated that all income and expenses declared must be backed by valid electronic tax invoices that are properly transmitted and contain the buyer’s PIN where applicable. The validation requirement will apply in line with Section 23A of the Tax Procedures Act, Cap 469B, and the Tax Procedures (Electronic Tax Invoice) Regulations, 2024, except for cases that fall under specified exemptions.
To help taxpayers prepare, KRA is encouraging them to request TIMS/eTIMS schedules of their current annual income and expenses from their designated account managers. This step is intended to enable taxpayers to reconcile their bookkeeping records with the data that KRA will rely on during validation.
The authority has also invited taxpayers and stakeholders to submit feedback and insights to support a smooth transition into the new compliance system.
KRA noted that working closely with taxpayers during the preparation phase will help minimize filing rejections and reduce the likelihood of discrepancies that may trigger additional reviews or assessments once the validation process begins.
KRAalsob emphasised that it will not take responsibility for payments that are not received, credited, and validated in the relevant KRA accounts. This reminder highlights the need for taxpayers to ensure accurate, timely, and verifiable submissions ahead of the 2026 rollout.
The new validation policy forms part of KRA’s broader modernisation efforts aimed at strengthening tax compliance and improving transparency within the country’s tax administration system.
By Our reporter
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