The Kenya Revenue Authority (KRA) has announced that it will begin automated validation of income and expense declarations in both individual and non-individual tax returns starting January 10, 2026.
According to the authority, the new system will be integrated into the iTax platform to improve accuracy and compliance in tax reporting. It will automatically validate information declared by taxpayers against multiple databases to ensure consistency and transparency.
In a notice, KRA stated that starting January 10, 2026, it will validate the income and expenses reported in both individual and non-individual income tax returns using the following data sources: TIMS/eTIMS invoices, gross amounts of Withholding Income Tax, and import records from Customs systems.
The authority further clarified that the requirement around digital invoices will be strictly enforced.
“All declared income and expenses must be supported by a valid electronic tax invoice, correctly transmitted with the buyer’s PIN, where applicable, subject to exceptions provided under Section 23A of the Tax Procedures Act, Cap 469B and the Tax Procedures (Electronic Tax Invoice) Regulations, 2024.”
To help taxpayers prepare for the transition, KRA has encouraged individuals and businesses to request TIMS or eTIMS schedules of their annual income and expenses from their account managers. This will help them confirm that all data matches what has been submitted through the iTax system.
