KRA announces new stock tracking rules for businesses using eTIMS

The Kenya Revenue Authority (KRA) is moving to introduce a new stock management functionality under its electronic invoicing system, requiring businesses to maintain accurate and up-to-date records of goods as they move through their operations.

In a public notice dated September 4, 2026, KRA, taxpayers engaged in business will be required to ensure their stock records accurately reflect goods purchased or received, sold, transferred, returned, adjusted or otherwise disposed of while conducting business.

The authority said the functionality is intended to support compliance with tax obligations while improving the accuracy of tax returns and other business reporting.

The announcement comes days after KRA and the National Treasury announced the successful integration of the Electronic Tax Invoice Management System (eTIMS) with the Integrated Financial Management Information System (IFMIS), bringing electronic tax invoice verification into the government payment process.

KRA's notice highlights the connection between a business's physical stock movements and its electronic records.

Businesses using TIMS/eTIMS will be expected to maintain records that account for changes in their stock throughout the course of business.

The records should capture goods entering a business through purchases or other receipts, as well as products leaving the business through sales, transfers, returns, adjustments or other forms of disposal.

KRA said accurate stock management will support compliance with tax obligations and improve the accuracy of tax returns and reporting.

The authority has not, in the notice, provided a detailed implementation timetable for the functionality.

It instead announced that it will first hold consultative forums with the business community and other stakeholders.

The forums are expected to begin in September 2026.

KRA said the consultations will allow businesses to understand how the stock management functionality works, seek clarification, raise implementation challenges and make recommendations that could inform appropriate enhancements.

The authority has encouraged taxpayers and relevant stakeholders to participate in the process.

The stock-management announcement comes after KRA announced that it had successfully integrated eTIMS with IFMIS in collaboration with the National Treasury.

The new arrangement requires suppliers doing business with government entities to generate valid eTIMS invoices before submitting them through IFMIS for payment processing.

Information contained in an invoice submitted to a government entity must correspond with the invoice generated and recorded in eTIMS.

KRA said the integration would promote transparency and accountability in government transactions, support seamless financial processes and enhance tax compliance through automated invoice validation.

“The integration marks a significant milestone in the Government's Digital Transformation Agenda,” KRA said in the notice.

Suppliers have also been advised to regularly check their tax compliance status and ensure their tax records and information remain accurate and up to date.

The integration builds on an existing relationship between KRA systems and IFMIS, which has included the automated generation of withholding certificates for government suppliers and posting of the certificates in suppliers' ledgers.

eTIMS is KRA's electronic tax invoicing system through which businesses generate and manage electronic tax invoices.

KRA requires persons engaged in business to onboard the system and issue electronic tax invoices.

The authority provides different solutions, including the eTIMS online portal, eTIMS Client and eTIMS Lite, while businesses with automated invoicing systems can use system-to-system integration.

Such businesses can connect their systems through an Online Sales Control Unit (OSCU) or Virtual Sales Control Unit (VSCU).

KRA also allows taxpayers to undertake self-integration or work with KRA-certified third-party integrators.

The stock-management functionality adds another layer to the electronic records generated around business transactions by requiring stock movements to be accurately accounted for.

KRA said the forums will be used to explain how the functionality works and identify practical challenges that businesses may face.

Recommendations arising from the consultations will also be considered in determining appropriate enhancements.

KRA said the consultations are intended to support a smooth and practical implementation and minimise disruption to business operations.

Taxpayers requiring further information or support have been directed to contact the KRA Contact Centre on 020 4 999 999 or 0711 099 999, or through callcentre@kra.go.ke and stakeholder.engagement@kra.go.ke.