KRA etims

Section 15 of the Income Tax Act provides for the deduction of business expenditure while arriving at the adjusted taxable income for the year. Such expenditure should have been wholly and exclusively incurred in the generation of income, supported by valid tax invoice (s) or any other supporting documentation.

Further Changes in Finance Act 2023 for expenditure to Qualify

The Finance Act 2023 introduced a further requirement concerning the deductibility of business expenditure for tax purposes. Effective 1st September 2023, only expenses that would have been generated and transmitted through the electronic tax invoice management system (eTIMS) will be allowable for tax deduction.

Mandatory eTims on boarding

Through their public notice dated 07/11/2023, The Kenya Revenue Authority notified the general public that all taxpayers including those not registered for VAT would be required to be on boarded to eTIMS and ensure that all their invoices are eTims compliant. The notice further clarified that the effective date has been extended to 1st January 2024.


It is therefore imperative that businesses vet their suppliers to ensure that they are compliant with this requirement to avoid the dis-allowing of expenditure procured from non-compliant suppliers.

In case of any clarification or assistance on this, kindly contact our tax service team on:

Jeremy Mvera: Tax Manager:

Beatrice Kamau: Partner:

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