Nairobi — October 7, 2025
Ordinary Kenyans and business owners seeking a Tax Compliance Certificate (TCC) will now face tougher scrutiny as the Kenya Revenue Authority (KRA) rolls out new rules linking approval to full compliance with the Electronic Tax Invoice Management System (eTIMS) and stricter tax filing conditions.
In a statement issued on Friday, the tax agency said the updated requirements are part of efforts to tighten enforcement and enhance tax accountability across all sectors.
“It will now be mandatory for all non-individual entities and individuals earning income beyond employment to comply with eTIMS or its predecessor, TIMS,” KRA stated.
The directive means that businesses not yet registered on the eTIMS platform will be ineligible for a compliance certificate until they meet the new conditions.
New Requirements for Applicants
Applicants will now need to prove they have filed all tax returns on or before the due dates for every applicable tax obligation. Those with outstanding liabilities must either pay in full or enter into a formal payment plan with the authority.
“The payment plan, once approved, enables the taxpayer to continue with the self-service process of TCC application,” KRA explained.
“However, those with unapproved or defaulted payment arrangements will not receive the certificate.”
Taxpayers are also expected to be fully compliant with Value Added Tax (VAT) regulations — including rules under the VAT Special Table, which monitors high-risk or flagged accounts.
Focus on VAT and Fraud Prevention
According to the agency, the VAT compliance requirement is designed to ensure businesses remain consistent across all tax obligations.
Tax analysts say the move could complicate matters for some VAT-registered firms that have previously been flagged under the “missing trader” category — a reference to suppliers that collect VAT but fail to remit it.
Under the new framework, companies connected to such irregularities risk being classified as non-compliant, which could delay or block approval of their Tax Compliance Certificates until investigations are resolved.
Verification Still Through iTax
KRA confirmed that all applications will continue to be made through the iTax platform, with applicants advised to verify their certificates using the online TCC checker available on the portal.
The new measures mark another step in the authority’s wider crackdown on tax evasion and its push for digital compliance, following the nationwide rollout of eTIMS earlier this year.
Tax professionals have described the changes as a “wake-up call” for businesses that have not fully integrated digital invoicing systems or cleared outstanding tax issues.
As Kenya’s economy continues to face fiscal pressure, KRA appears determined to close compliance gaps — signalling that the days of leniency for defaulting taxpayers may be drawing to a close.