The Kenya Revenue Authority (KRA) has announced several important updates for the 2026 tax year that will impact both individuals and businesses. As your trusted tax consultancy partner, Tax Home Kenya Limited is here to help you understand these changes and ensure your compliance.
Key KRA Updates for 2026
The KRA has implemented several significant changes to streamline tax administration and improve compliance. These updates reflect the government's commitment to modernizing Kenya's tax system and making it more efficient for taxpayers.
1. Enhanced eTIMS Requirements
The Electronic Tax Invoice Management System (eTIMS) continues to be a priority for the KRA. Businesses that are already registered with eTIMS must ensure they are compliant with the latest system updates and requirements. The KRA has extended eTIMS registration to more businesses, and if your business meets the threshold requirements, you may now be required to register.
- Mandatory for all businesses
- Integration with your Point of Sale (POS) systems is essential
- Real-time invoice transmission to KRA is now mandatory
- Penalties for non-compliance
2. Updated Tax Filing Deadlines
Tax filing deadlines for the 2026 tax year. It is crucial to mark these dates on your calendar to avoid penalties and interest charges:
- Individual tax returns: June 30, 2026
- Company tax returns: 6 months after FY end
- VAT and TOT returns: Monthly filing (20th of the following month)
- WH VAT and WHT returns: within 5 days after deduction)
- PAYE,NSSF, SHIF, Housing levy & Training Levy returns: Monthly filing (by the 9th of the following month)
3. Penalties for Late Filing
Taxpayers who fail to file their returns on time may face significant financial penalties. This makes timely filing more important than ever.
- Late filing penalties - 10%
- Interest on unpaid taxes now accrues at 1% per month
- Penalties are strictly enforced
4. Tax Compliance Certificates
The KRA has introduced a new Tax Compliance Certificate (TCC) system. This certificate is now required for various government transactions and tender processes. Ensure your business maintains full compliance to obtain and maintain your TCC.
5. VAT Changes and Clarifications
Several clarifications have been made regarding VAT treatment of certain goods and services. If your business deals with any of the following, ensure you understand the new guidelines:
- Digital services and online transactions
- Financial services and insurance products
- Agricultural products and exemptions
- Export and import procedures
How Tax Home Kenya Limited Can Help
At Tax Home Kenya Limited, we stay updated with all KRA changes and ensure our clients remain compliant. Here's how we can support you:
- Compliance Audit: We review your current tax position and ensure you meet all 2026 requirements
- eTIMS Implementation: If you need to register for eTIMS, we provide complete guidance and support
- Tax Planning: We help you optimize your tax position within the new regulatory framework
- Filing Services: We ensure timely and accurate filing of all your tax returns
- Ongoing Support: We provide regular updates and guidance throughout the year
Action Items for Your Business
To ensure compliance with the 2026 KRA updates, consider taking these steps:
- Review your current tax registration status with the KRA
- Check if eTIMS registration is required for your business
- Update your accounting systems to align with new requirements
- Mark all filing deadlines on your calendar
- Consult with a tax professional to ensure full compliance
Get Professional Support
Tax compliance can be complex, especially with regular updates from the KRA. If you're unsure about how these changes affect your business, we recommend reaching out to a professional tax consultant. At Tax Home Kenya Limited, we're here to help you navigate these changes and ensure your business remains fully compliant.
Contact us today for a consultation:
- 📞 Phone: +254 725 416 982
- 📧 Email: taxhomekenyalimited24@gmail.com
- 💬 WhatsApp: Chat with us