The continued rollout of the electronic Tax Invoice Management System (eTIMS) by the government to streamline revenue collections has been met by staunch opposition.
In an effort to get more Kenyans to remit taxes, the Kenya Revenue Authority (KRA) has targeted Farmers, small-scale traders, and other businesses. Farmers in the agriculture industry are facing the biggest challenges with the new system. They report companies are refusing their payments because they haven’t registered yet.
The pleas by the primary producers may have been heard. Last Tuesday, the Deputy President, Rigathi Gachagua, instructed a committee to develop a plan exempting them from the eTIMS requirement mandated by the Finance Act 2023.
Primarily, Avocado farmers’ outcry over the new requirement was the loudest. They claim the eTIMS directive is hurting the sub-sector and pushing exporters to relocate to business-friendly Tanzania.
Mt Kenya’s avocado farmers report a severe financial strain. They claim companies are refusing to pay them because they haven’t registered with the new system. This has made it difficult to make ends meet.
Avocado Farmers Association chairperson Munyui Wa Njohi observed that the new regulation will discourage farmers from venturing into avocado farming.
“Farmers are not familiar with the electronic invoicing systems and are also required to have KRA pins and smartphones which most do not have,” said Mr Njohi.
Now, it is up to the committee to tackle challenges arising from the eTIMS requirement. It comprises elected officials (Sen. James Murango of Kirinyaga and MP John Mutunga of Tigania West), industry stakeholders representing exporters, aggregators, farmers, and processors, along with Cabinet Secretaries from the Ministries of Trade, Agriculture, Cooperatives, and Treasury. Additionally, officials from the Deputy President’s office will be involved.
Last year, KRA put boots on the ground to ensure eTIMS compliance among small businesses across the country.
