Question 1

What is the KRA eTIMS penalty in 2026?

Accepted Answer

Under Section 86 of the Tax Procedures Act, failure to issue eTIMS-compliant electronic tax invoices can attract a penalty of up to double the tax due, or a minimum of KES 100,000 — whichever is higher. Separately, unsupported expenses are disallowed and added back as taxable income, taxed at the 30% corporate rate. Company late filing adds KES 20,000 or 5% of the tax due, plus 1% interest per month.

Question 2

Why does eTIMS non-compliance cost more than the penalty?

Accepted Answer

Beyond direct penalties, your B2B customers cannot claim non-eTIMS invoices as deductible expenses during the 2026 filing. This means they stop buying from you, causing lost revenue often larger than the fine itself.

Question 3

How does KRA detect eTIMS non-compliance?

Accepted Answer

Since 1 January 2026, KRA runs an automated validation engine that cross-checks every figure in your tax return against eTIMS, withholding tax, and customs data in real time. Errors and unsupported expenses are flagged automatically — no auditor required.

Question 4

How can a business automatically comply with eTIMS?

Accepted Answer

Using a KRA-certified system like Maamul, every sale automatically generates and transmits a valid eTIMS invoice to KRA in real time, with the required QR code. No manual portal entry, no accountant, no missed filings.

How much could KRA fine your business?