KRA Tightens Tax Rules in Eastleigh

Nairobi: The Kenya Revenue Authority (KRA) has stepped up its push for tax compliance among traders in Eastleigh, focusing on the use of the electronic Tax Invoice Management System, eTIMS. The move targets businesses that have been slow to adopt the system, which is meant to improve transparency and accountability in transactions.

This follows a consultative meeting between KRA officials and the Eastleigh Business District Association (EBDA), where traders were given a clear timeline to begin issuing electronic tax receipts. The directive is aimed at ensuring that all transactions are properly recorded, making it easier to track business activity and enforce tax obligations.

During the discussions, KRA Commissioner for Micro and Small Taxpayers, George Obell, pointed out that low adoption of eTIMS and failure to issue invoices have made it difficult to monitor business operations in Eastleigh. He explained that this gap has contributed to widespread non-compliance, as many traders continue to operate without proper documentation of their sales.

Obell further noted that the ripple effect goes beyond Eastleigh. Businesses across the country that source goods from the area often struggle to claim expenses because they lack valid eTIMS invoices. This, he said, is largely due to cash-based transactions where traders avoid issuing receipts, locking buyers out of legitimate tax claims.

To ease the transition, KRA pledged support measures including taxpayer registration, filing assistance, onboarding to eTIMS, and general tax education. The aim is to help traders understand the system and meet the new requirements without unnecessary disruption to their businesses.

According to EBDA Secretary General, Omar Hussein, traders have been given until May 1 to fully comply by issuing electronic tax receipts. He emphasized that tax compliance is now central to doing business in Eastleigh, which serves as a major commercial hub attracting traders from across Africa.

The meeting also brought out key barriers to compliance, including language challenges, complicated tax procedures, and limited access to KRA service points. Hussein noted that many traders struggle with official languages, making it harder for them to understand tax requirements.

In response, KRA said it will deploy officers who can communicate in local languages and set up service desks within shopping malls in Eastleigh.

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