Kenya Revenue Authority (KRA) leadership has partnered with the members of the Eastleigh Business District Association (EBDA) to address concerns about the eTIMS compliance gaps in Eastleigh businesses.
In a press release dated April 13, the authority held a meeting with the EBDA due to the concerns about tax compliance in the area.
In addition, the authority also addressed the adoption of the Electronic Tax Invoice Management System (eTIMS), which poses challenges for traders operating in Eastleigh.
KRA cited that the gap in the issuance of eTIMS-compliant invoices affected not only businesses in Eastleigh but also those that sourced goods from the businesses in Eastleigh.
Speaking during the engagement, Commissioner for Micro and Small Taxpayers, Mr. George Obell, argued that the low uptake of eTIMS and the limited issuance of invoices in Eastleigh have contributed to non-compliance among many businesses.
“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,” said Mr. Obell.
In addition, he stated that the authority was obligated to provide end-to-end support to traders, including PIN registration, tax filing assistance, eTims onboarding, and guidance on tax payments to ensure full compliance.
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Challenges facing Business Owners in Eastleigh
According to the authority, language barriers, complex tax processes, and limited access to KRA services were among the major factors that contributed to tax non-compliance by the business owners.
EBDA Secretary General, Omar Hussein, also added that, regarding the language barrier, many traders in Eastleigh are not conversant with the official languages, creating a gap in understanding of tax obligations.
He called on KRA to deploy officers proficient in local dialects to improve communication and enhance compliance.
In addition, the Secretary General urged traders to embrace the issuance of eTIMS receipts and set a positive example, noting that Eastleigh is one of the largest business hubs in East and Central Africa.
In response, Commissioner Obell assured the business community that KRA will deploy officers familiar with local languages to facilitate effective engagement and provide tailored tax education.
Plans to establish the KRA services desk within the business premises were underway in collaboration with the mall management in Eastleigh, according to the Commissioner for Micro and Small Taxpayers.
“KRA is committed to supporting traders, and we will provide the necessary facilitation and guidance to ensure that every business understands and meets its responsibilities, including registration, filing,g and paying their taxes,” he said.
On the other hand,d Deputy Commissioner for Tax Base Expansion, Ms. Esther Wahome, encouraged traders to adopt eTIMS, emphasizing that the solution applies to all businesses, not only those registered for VAT.
Moreover, Esther explained that eTIMS enhances transaction visibility and promotes voluntary compliance.
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KRA Solution
According to the Deputy Commissioner for Tax Base Expansion, KRA had rolled out a USSD solution *222#5# to ease tax registration, eTIMS onboarding, tax payment, and filing.
Additionally, the authority is expected to roll out a vibrant on-the-ground tax compliance support program in the Eastleigh area this month to assist businesses in maintaining compliance.
The initiative will see KRA officers deployed across the Eastleigh business district to support traders in registering for tax obligations and educating them on filing and paying their tax returns.
