The Kenya Revenue Authority has introduced a major shift in how income tax returns will be reviewed Starting January 2026 KRA will validate every income and expense declared in your return against data already captured in their systems This affects individuals businesses and organizations of all sizes so understanding the changes early is crucial
What’s Changing
KRA will now automatically match your declared figures against three key data points
TIMS eTIMS invoices
Withholding Income Tax records
Customs import declarations
If your return includes income or expenses that do not match what KRA already has on file those entries can be rejected This means higher tax exposure possible penalties and unnecessary audits
Why This Matters
This is a move toward a full data driven tax ecosystem Handwritten receipts manual bookkeeping and unsupported expense claims will no longer pass KRA validation Everything must be backed by a compliant digital invoice a withholding record or a customs entry Businesses that have not fully digitized their records or still rely on scattered systems will face serious compliance risks
How FaidiHR Becomes the Game Changer
This is where FaidiHR makes your life dramatically easier Instead of juggling separate tools for payroll accounting eTIMS and employee records FaidiHR consolidates everything into one clean system that is fully aligned with KRA requirements
FaidiHR helps you
Automatically synchronize payroll expenses with compliant accounting records
Generate clean accurate exportable data that aligns with eTIMS requirements
Eliminate manual errors duplication and mismatched data that could trigger KRA penalties
Access real time reports that make reconciliation simple and stress free
When KRA begins validating every shilling your ability to prove accuracy becomes non negotiable FaidiHR gives you a seamless structured and reliable system that keeps your business compliant without the usual paperwork headaches It’s not just helpful it is transformative for any Kenyan business preparing for the new tax environment
How to Prepare Now
Use eTIMS for all business invoices
Reconcile your books with withholding and customs data
Move your payroll and record keeping into a unified system
Adopt a platform like FaidiHR that ensures clean accurate and verifiable financial data
With these changes coming fast having the right tools is no longer optional It is the only way to stay compliant and avoid last minute chaos
If you need support organizing your data streamlining compliance or preparing your business for the new KRA validation rules FaidiHR is ready to help
Call 254 702 339 699
Email sales@faidihr.com