The Kenya Revenue Authority (KRA) has announced that effective January 1, 2026, it will begin validating the income and expenses declared in taxpayers’ income tax returns against its official data sources. The data sources include TIMS/eTIMS invoices, Withholding Income Tax gross amounts, and import records from customs systems.
According to a notice released on November 7, the validation exercise will first be applied to the 2025 tax returns, which are due to be filed via the iTax platform before June next year.
“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) 2024,” KRA stated.
The authority also announced the introduction of an Automated Payment Plan (APP) to provide taxpayers with a more convenient way of settling outstanding tax liabilities. The APP allows eligible taxpayers to pay their taxes, including penalties and interest, in structured instalments.
“This system is designed to enable taxpayers who genuinely cannot pay their full tax liability at once to clear their dues in instalments,” KRA explained.
To qualify for the plan, taxpayers must have a valid KRA PIN, be fully compliant with iTax registration, and have a confirmed tax liability that is not under litigation or appeal. Taxpayers will be required to submit a proposed instalment schedule through iTax or designated KRA portals, with a repayment period not exceeding six months.
KRA warned that failure to adhere to the agreed payment schedule may result in the termination of the plan and enforcement actions, which could include revocation of the Tax Compliance Certificate and other legal recovery measures.
The new measures aim to enhance tax compliance and streamline payment processes for Kenyans, ensuring that all declared income and expenses are accurate and supported by official records while providing relief options for taxpayers who need flexible payment solutions.
