24/11/2025
📢 KRA Compliance Update: New Income Validation & Automated Payment Plans
KRA has announced two major compliance reforms that will significantly affect how individuals and businesses file their taxes moving forward. These reforms are designed to strengthen transparency, accuracy, and fairness in the tax system.
1️⃣ Income & Expense Validation – Effective January 2026
Starting 1st January 2026, KRA will begin validating all income and expenses declared in tax returns for the 2025 accounting period. Validation will be automated through iTax and cross-checked against verified data sources such as:
✔ TIMS/eTIMS electronic tax invoices
✔ Withholding tax data
✔ Import data from Customs
✔ Other system-captured records
This move ensures:
Only valid eTIMS-compliant invoices will be accepted
Declared income and expenses truly match business activity
Reduced manual verification and stronger self-assessment integrity
👉 Businesses must urgently ensure all their 2025 invoices are eTIMS-supported to avoid disallowances.
2️⃣ Automated Payment Plan (APP) – Now Available
KRA has also introduced the Automated Payment Plan (APP), a digital instalment payment system for taxpayers unable to settle outstanding liabilities at once. The APP covers principal tax, penalties, and interest, and offers structured repayment of up to 6 months.
To qualify, you must:
Have a valid KRA PIN
Be fully compliant on iTax
Have a confirmed tax liability not under objection
Demonstrate genuine inability to clear the debt at once
Submit a proposal via iTax for review
Failure to follow the agreed schedule may lead to termination of the plan and enforcement action.
Why This Matters
These two reforms mark a new era of digital tax governance, where accuracy, automation, and accountability take centre stage.
Businesses must prepare early to avoid penalties or rejected expenses.
Zuki Consult CPAs is ready to support you with:
• eTIMS onboarding
• Tax health checks
• Validation readiness
• Full tax compliance planning
📞 +254 707 774 321
🌍 Zuki Consult CPAs – Our Knowledge, Your Transformation.
