eTIMS Invoicing Exemptions In Kenya
Background: What is eTIMS? The Electronic Tax Invoice Management System (eTIMS) is Kenya Revenue Authority’s (KRA) advanced digital platform for issuing, transmitting, and storing tax invoices electronically. It was introduced as an enhancement of the original Tax Invoice Management System (TIMS) and the Electronic Tax Register (ETR) regime to modernize invoicing, improve real-time reporting, and […]
New NSSF Rates – Effective from February 2026
The National Social Security Fund (NSSF) reforms set to take effect in February 2026 represent the fourth phase of a comprehensive, multi-year overhaul of Kenya’s pension contribution framework under the National Social Security Fund Act, 2013 (NSSF Act). This phased implementation began in February 2023 and is designed to expand pension coverage, strengthen retirement savings, […]
Significant Economic Presence Tax in Kenya.
Kenya’s digital economy is evolving quickly. Global companies now earn significant income from Kenyan users without setting foot in the country. To modernize its tax system and ensure fairness, the government introduced the Significant Economic Presence (SEP) Tax, replacing the former Digital Service Tax (DST). If your business offers digital services to Kenyan users, this […]
Understanding Rental Income Tax in Kenya: What Every Landlord Should Know
What Is Rent? Rent refers to any payment received for granting another person the right to use or occupy property. This includes premiums, lease payments, or any similar consideration tied to immovable property such as land, buildings, or permanent structures. In Kenya, rental income is subject to taxation under the Income Tax Act (Cap 470). […]
Turnover Tax (TOT) vs Income Tax in Kenya: A Guide for SMEs
Running a small or medium-sized business in Kenya means choosing the right tax regime. The two most common options are Turnover Tax (TOT) and Income Tax. Both apply under the Kenya Revenue Authority (KRA), but they work very differently. Picking the right one can save you money, reduce stress, and keep your business compliant. 1. […]
Buyer-Initiated Invoicing in Kenya – Complete SME Tax Compliance Guide
What Is Buyer-Initiated Invoicing in Kenya (Reverse Invoicing)? Buyer-initiated invoicing, also called reverse invoicing in Kenya, is transforming how small and informal businesses comply with the Kenya Revenue Authority’s (KRA) electronic tax invoicing requirements. This system allows a buyer to create a fully tax-compliant KRA eTIMS invoice on behalf of the seller. It is an […]
Donations as an Income Tax Deduction in Kenya.
Understanding Tax-Deductible Donations in Kenya. A donation is more than just a gift — it’s a voluntary contribution made for charitable purposes, humanitarian aid, or to support a meaningful cause. By definition, donations are given freely, without the expectation of compensation or personal gain. In many cases, such generosity also comes with tax benefits, particularly […]
Finance Bill 2025: An overview of impact on Kenya’s economy.
The Finance Act 2025 is a transitional framework—its short-term burden is meant to stabilize revenue and restore fiscal credibility, while its medium- to long-term incentives target investment, sustainability, and digital growth. If effectively implemented and coupled with public trust-building measures, its full economic impact could span 5–10 years, shaping the next decade of Kenya’s economic […]