From January 2026, KRA validates every expense in your annual tax return against eTIMS data. If you are claiming a business expense supported by a manual invoice - one not transmitted through the eTIMS system - you may find that claim disallowed on audit.
What Changed in January 2026
KRA's Income Tax rules now require that deductible expenses be supported by eTIMS-compliant invoices where the supplier is a registered taxpayer. Manual invoices - printed receipts, handwritten invoices, or PDF invoices sent by email without eTIMS validation - no longer meet the standard for expense deduction in most cases.
Who Does This Affect?
This affects every business that pays suppliers who are either VAT-registered or have a turnover above KES 5 million. If you rent office space, pay a cleaning contractor, use a courier, or buy supplies from a wholesale distributor - all of these should now be invoiced via eTIMS.
What You Should Do Now
First, audit your supplier list. For any supplier whose invoices you claim as expenses, confirm whether they are eTIMS-enabled. Ask them directly - any compliant supplier should be able to email you an eTIMS-validated invoice with a QR code.
Second, update your purchase approval process. Before paying any significant invoice, your accounts team should verify eTIMS compliance. Third, for the 2025 tax year return (due June 2026 for December year-end businesses), review your expense claims carefully.