The Kenya Revenue Authority (KRA) has unveiled new measures aimed at strengthening compliance and improving the accuracy of tax declarations.
Beginning January 2026, the authority will start validating the income and expenses declared by taxpayers during filing, marking a significant shift in how annual tax returns will be reviewed.
According to a notice issued on November 7, the verification will apply to 2025 tax returns that will be filed through the iTax system before June next year.
KRA said it will compare the information provided by taxpayers with its own data sources, including the TIMS and eTIMS platforms, Withholding Income Tax details, and import records maintained under its customs systems.
“This validation will take place upon submission of the 2025 year of income/accounting period via the iTax platform,” KRA said in its statement.
The authority emphasized that all declared figures must be backed by valid electronic tax invoices that have been correctly transmitted, complete with the buyer’s Personal Identification Number (PIN) where required.
This requirement will be enforced in line with Section 23A of the Tax Procedures Act and the 2024 Tax Procedures (Electronic Tax Invoice) Regulations.
The agency explained that the exercise is intended to ensure that every deduction and income reported during the filing process reflects actual transactions captured within its systems. This, it noted, would help reduce false declarations and enhance transparency in the country’s tax system.
Automated Payment Plan for Taxpayers
In addition to the validation measure, KRA announced the rollout of an Automated Payment Plan (APP) to assist taxpayers facing difficulties in settling their tax liabilities in full. The new digital platform is designed to make it easier for individuals and businesses to clear their dues in manageable instalments.
“Kenya Revenue Authority wishes to inform taxpayers and the general public that as part of its ongoing commitment to enhance convenience and promote compliance, it is introducing a new Automated Payment Plan (APP) mechanism,” read the statement.
Through the APP, taxpayers will be able to apply for payment arrangements via iTax or KRA’s dedicated portals. The plan allows repayment in structured instalments over a period not exceeding six months.
KRA stated that only those who are compliant with iTax registration, hold valid KRA PINs, and have confirmed tax obligations not under dispute will be eligible for the arrangement. “This system is designed to enable taxpayers who genuinely cannot pay their full tax liability at once to clear their dues in instalments,” the notice added.
However, KRA warned that any failure to adhere to the agreed schedule will automatically cancel the plan and trigger enforcement measures. “Failure to adhere to the agreed payment schedule may lead to termination of the plan and trigger enforcement action. These may include revocation of the Tax Compliance Certificate and other legal recovery measures,” the taxman stated.
The two initiatives are part of KRA’s wider efforts to simplify tax administration, promote honesty in tax declarations, and encourage voluntary compliance across all sectors.
