The Kenya Revenue Authority (KRA) has introduced new requirements for obtaining Tax Compliance Certificates (TCC) for Kenyans earning extra income from side hustles or rental properties.
In a statement issued on Monday, November 10, KRA announced that any person earning income beyond their salary, including a side hustle or rental properties, must issue an Electronic Tax Invoice Management System (eTIMS) invoice to obtain a Tax Compliance Certificate
According to the taxman, the move promotes transparency and credibility in Kenya’s business landscape.
“If you earn income beyond your salary, whether from a side hustle or rental property, you must issue electronic tax invoices through eTIMS for your TCC to be approved,” KRA said.
“And by staying compliant, you strengthen your eligibility for tenders, contracts, and bigger business opportunities.”
The eTIMS platform can be accessed on a range of devices, including computers, laptops, tablets, and smartphones, allowing businesses to track transactions, manage stock, and maintain accurate records with ease.
The system is mandatory for all businesses, whether registered for VAT or not, ensuring that all reported income and expenses are properly documented and supported by valid electronic tax invoices.
Onboarding onto eTIMS is done through the taxpayer portal, where businesses can choose the solution that best fits their operations.
Service-based businesses can use the online portal, while those dealing in goods or a mix of goods and services can use the eTIMS Client.
Larger businesses with high transaction volumes have the option of integrating their invoicing systems directly with eTIMS through the Virtual Sales Control Unit (VSCU) or the Online Sales Control Unit (OSCU).
Also Read: KRA to Introduce New Changes on Income Tax Returns Starting January 2026
Changes to the TCC Application Process
This follows KRA’s announcement in October of changes to the Tax Compliance Certificate application process.
Under the new guidelines, taxpayers seeking a TCC must ensure all tax returns are filed and payments made on or before the due dates.
Applicants are also required to settle any outstanding tax liabilities or secure an approved payment plan to continue accessing the self-service TCC application portal.
The Authority emphasized that all applicants must remain VAT compliant, including those listed under the VAT Special Table category.
Taxpayers can submit their applications and verify their TCCs through the iTax platform, using the Certificate Checker tool available on the KRA portal.
Also Read: KRA Unveils New System to Help Kenyans Clear Tax Arrears in Easy Instalments
A Tax Clearance Certificate is an official document issued by KRA as proof of having filed and paid all your taxes.
Tax Compliance Certificates are valid for a period of twelve months only. A tax Compliance Certificate is a requirement when applying for a job, renewing of work permit, or even clearing and forwarding agents’ licenses.
Others include applying for a government tender, seeking a license to operate a Liquor Store, and confirming one’s compliance status.
KRA to Validate Income and Expenses Using eTIMS and Other Data Sources
Meanwhile, effective January 10, 2026, KRA will begin validating income and expenses declared in both individual and non-individual income tax returns against multiple data sources.
These will include TIMS/eTIMS invoices, Withholding Income Tax gross amounts, and import records from Customs systems.
All declared income and expenses must be supported by a valid electronic tax invoice, correctly transmitted with the buyer’s PIN where applicable.
This requirement is subject to exceptions provided under Section 23A of the Tax Procedures Act, Cap 469B, and the Tax Procedures (Electronic Tax Invoice) Regulations, 2024.
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