The Kenya Revenue Authority (KRA) has introduced key enhancements to its iTax platform, making it easier for businesses to declare legitimate expenses that lack eTIMS invoices.

The update follows scheduled system maintenance and is aimed at improving tax filing efficiency for businesses operating within both formal and informal supply chains.

KRA’s eTIMS (Electronic Tax Invoice Management System) requires electronic invoicing to improve transparency, reduce tax evasion, and create a verifiable digital audit trail.

However, many everyday business transactions occur outside the formal system, including purchases from farmers, matatu fares, supplies from Jua Kali artisans, and goods from roadside vendors.

These transactions often lack eTIMS invoices because many small-scale traders are unregistered or unable to issue electronic receipts. Previously, this made it difficult for businesses to claim valid deductions during tax filing.

“Two significant enhancements were deployed on iTax this past Sunday, and understanding them could save you time, frustration, and potentially money during this filing period,” read KRA’s X post dated May 19, 2026, in part.

Key improvements in iTax

The updated iTax system builds on the Manual Non-eTIMS CSV upload feature, allowing taxpayers to declare such expenses by uploading structured CSV files.

The system processes claims immediately after upload without requiring prior approval, reducing delays during filing. It also includes automated error detection that flags incorrect entries and guides users on necessary corrections.

A key change in the update is that the supplier’s PIN field is now optional. Previously, taxpayers were required to include a PIN for every expense entry, which was often not possible for informal suppliers. The adjustment allows businesses to declare valid expenses even when supplier PINs are unavailable, while still validating those provided. The change is intended to improve compliance without excluding transactions from the informal sector.

The enhancement followed a brief iTax maintenance window conducted between Sunday, May 17, 2026, at 10:00 pm and Monday, May 18, 2026, at 2:00 am. KRA stated that the upgrade was part of ongoing system optimization ahead of the June 30 tax filing deadline. The authority noted that the exercise was designed to improve system stability and user experience.

Why it matters

With income and expense verification now fully integrated into iTax, the system cross-checks tax returns against eTIMS records, withholding tax data, and customs declarations. Unsupported expenses may be disallowed, potentially leading to penalties or audits.

The revised Manual Non-eTIMS feature, now reflected in updated IT1 and IT2C forms, provides a structured channel for declaring such expenses while attaching supporting documentation where necessary.

KRA’s updates are expected to ease compliance pressure for businesses while improving accuracy in tax reporting. The changes reflect ongoing adjustments to accommodate Kenya’s hybrid economy, where formal and informal transactions frequently intersect.