Taxpayers Required to Upload Non-eTIMS Invoices Before Filing Returns, KRA Clarifies
NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has issued fresh guidance to taxpayers after a growing number of individuals and businesses reported having their 2025 income tax returns rejected despite successfully passing the initial validation process.
The tax authority said the problem largely stems from taxpayers failing to upload invoices generated outside the Electronic Tax Invoice Management System (eTIMS), creating discrepancies between declared income and expenses and the records available in KRA’s database.
The clarification comes amid increased adoption of eTIMS, the digital platform introduced by KRA to enhance tax compliance, improve transparency, and curb tax evasion across the country.
According to KRA, taxpayers who incur business expenses using invoices not generated through eTIMS are required to upload those invoices onto the system before filing their annual tax returns.
Failure to do so may result in the returns being flagged or rejected even if they initially pass the automated validation stage.
“Taxpayers must ensure that all non-eTIMS invoices are uploaded into the system before filing returns to avoid inconsistencies between declared expenses and records available to the Authority,” KRA stated in its clarification.
The authority explained that the validation process only checks whether the return has been completed correctly from a technical perspective. However, a deeper compliance review is conducted later to compare declared figures against transactional records captured in eTIMS.
Where discrepancies are identified, the returns may be rejected or subjected to further scrutiny.
The clarification followed complaints from taxpayers who reported receiving notifications indicating that their returns did not match information available in the tax authority’s systems.
One taxpayer raised concerns after his return was rejected despite having successfully completed the filing process. KRA responded by explaining that some of the expense records used in the filing had not been uploaded to the eTIMS platform, resulting in the mismatch.
The development highlights KRA’s growing reliance on technology-driven tax administration as the government seeks to increase revenue collection and improve compliance among taxpayers.
Since its rollout, eTIMS has become a central pillar of Kenya’s tax modernization strategy. The platform enables businesses to generate, transmit, and store invoices electronically while providing KRA with real-time visibility into commercial transactions.
Tax experts say the system is designed to minimize cases of underreporting and fraudulent expense claims while simplifying record-keeping for compliant taxpayers.
However, some businesses, particularly small and medium-sized enterprises, have reported challenges adapting to the new requirements due to limited awareness and technical capacity.
KRA has urged taxpayers to verify that all invoices, whether generated through eTIMS or manually issued by suppliers not yet onboarded to the system, are properly captured before filing returns.
The authority also encouraged taxpayers to seek assistance through KRA service centres, tax offices, and online support channels whenever they encounter difficulties during the filing process.
As the deadline for filing 2025 income tax returns approaches, tax professionals are advising businesses and individual taxpayers to review their records carefully to ensure full compliance with the updated requirements.
“The accuracy of tax returns now depends not only on correct calculations but also on whether supporting invoices have been properly uploaded and reconciled with eTIMS records,” KRA emphasized.
The latest clarification underscores the government’s broader push toward digital tax administration and signals increased scrutiny of taxpayer declarations as authorities seek to seal revenue leakages and strengthen compliance across Kenya’s economy.
With millions of taxpayers expected to file returns in the coming weeks, KRA says proper invoice reconciliation will be critical in avoiding delays, penalties, and return rejections during the filing season.
Taxpayers Required to Upload Non-eTIMS Invoices Before Filing Returns, KRA Clarifies
