KRA Goes After Eastleigh’s Cash-Based Businesses 

KRA has announced plans to onboard businesses in Eastleigh on eTIMS as it enhances tax compliance.

In a statement dated Monday, April 13, KRA stated that it will be deploying its officers to one of the busiest business hubs in the East Africa region this month to ensure that businesses register for KRA PINs.

The officers will also help the businesses to register for eTIMS, a move that will see businesses start issuing eTIMS receipts to traders.

According to the taxman, given that the traders were not issuing eTIMS receipts, many individuals and businesses that source their goods from Eastleigh find difficulties in accounting for their expenses while filing their taxes.

Also Read: KRA to Verify Tax Returns Filed by PIN Holders

“Many businesses across the country source goods from Eastleigh but face challenges in obtaining eTIMS invoices, which are critical for expense claims. This is because traders in Eastleigh receive cash payments and avoid issuing invoices to buyers. 

"We are therefore going to ensure that the traders are supported to register on eTIMS and issue receipts for all transactions, enhancing transparency and creating a level playing field in the market,” George Obell, the Commissioner for Micro and Small Taxpayers, stated.

Eastleigh Business District Association has already agreed with KRA over its plan and requested that the taxman deploy officers who are also fluent in local dialects understandable by traders in Eastleigh. 

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“Deputy Commissioner for Tax Base Expansion, Esther Wahome, encouraged traders to adopt eTIMS, emphasising that the solution applies to all businesses, not only those registered for VAT, noting that eTIMS enhances transaction visibility and promotes voluntary compliance. 

“She also pointed out that KRA had rolled out a USSD solution (*222#5#) which simplified tax registration, eTIMS onboarding, tax payment, and filing, among others,” KRA noted in its statement.

Also Read: KRA Changes the Process of Filing Taxes for Salaried Individuals; How It Will Work

Notably, this move comes after KRA rolled out the verification of business expenses that are submitted during the filing of tax returns.

Taxpayers are expected to back their expenses using eTIMS receipts. The directive took effect in January 2026 and affects the taxes being filed for 2025.

However, many Kenyans lamented over the directive that came in December, forcing KRA to change its stance.

KRA will now allow Kenyans to file their 2025 tax returns using expenses that are not compliant with eTIMS. 

Those who have non-compliant eTIMS receipts can now upload them on the iTax portal under the manual and non-eTIMS invoices tab when filing their returns.

However, for the 2026 tax returns that will be filed in 2027, businesses and individuals will be required to have eTIMS-backed expenses.