Relief for taxpayers as KRA eases tax filing rules as June 30 deadline approaches

The Kenya Revenue Authority (KRA) has granted taxpayers a temporary reprieve by allowing them to declare certain business expenses that may not be supported by electronic tax invoices when filing their 2025 income tax returns.

In a public notice issued on June 8, 2026, the taxman said the measure is intended to facilitate a smoother filing process as taxpayers work to meet the June 30 deadline for submitting their returns.

KRA said taxpayers filing returns for the 2025 Year of Income will be permitted to include valid business expenses even where such expenses are not supported by invoices generated through the Electronic Tax Invoice Management System (eTIMS) or Tax Invoice Management System (TIMS).

"To facilitate smooth filing for the 2025 Year of Income, KRA has allowed taxpayers to declare valid business expenses that may not be supported by eTIMS/TIMS invoices," the authority said in the notice.

The move is likely to offer relief to thousands of businesses that may have incurred legitimate expenses during the year but are unable to provide electronic tax invoices for every transaction.

However, KRA clarified that the concession does not amount to a waiver of verification requirements.

According to the authority, any expenses declared without eTIMS or TIMS documentation must be uploaded during the filing process and will undergo verification after the returns have been submitted.

"Such expenses may be uploaded during filing and will be subject to validation by KRA after submission," the notice stated.

This means taxpayers will still need to demonstrate that the expenses claimed are legitimate, even if they do not currently have the required electronic invoices.

Despite the temporary flexibility, KRA emphasised that the arrangement is strictly limited to the filing of 2025 income tax returns.

"This allowance applies only to the filing of 2025 Income Tax Returns," the authority said.

The taxman further signalled that stricter compliance measures will take effect beginning with the 2026 Year of Income.

"From the 2026 Year of Income onwards, all declared income and expenses must be supported by valid electronic tax invoices generated and transmitted through eTIMS/TIMS," KRA warned.

The announcement forms part of the authority's broader push towards digitisation and improved tax compliance through electronic invoicing systems, which are designed to enhance transparency and reduce tax leakages.

At the same time, KRA reminded taxpayers that the filing of 2025 income tax returns is ongoing and must be completed by June 30, 2026.

The authority cautioned that failure to file returns within the prescribed period could attract enforcement action under the law.

"Taxpayers who fail to file returns by 30th June 2026 will be subject to default assessments in accordance with Section 29 of the Tax Procedures Act, Cap 469B," the notice stated.

KRA has urged taxpayers to take advantage of the remaining weeks before the deadline to submit their returns and ensure any unsupported expenses are properly declared and uploaded for review.