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Why Nil Filing Has Been Paused: Inside KRA’s eTIMS Verification & Validation Exercise

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Nil Returns Are Paused — And It’s Not a System Glitch Many taxpayers attempting to file returns are encountering an unfamiliar reality: The Nil return option is no longer freely available. This is not an error, and it is not targeted enforcement. The pause on Nil filing is a deliberate outcome of KRA’s ongoing eTIMS verification and validation exercise, which is reshaping how tax compliance works in Kenya. At its core, KRA is sending a clear signal:returns must now be validated before they are accepted — including Nil returns.   Why KRA Has Paused Nil Filing Historically, Nil filing operated on trust. Taxpayers declared “no activity,” and verification followed later — if at all. That model has now changed. The current eTIMS-driven validation exercise is designed to ensure that: Income reported matches eTIMS transactional data Declared positions align with withholding tax records Expenses claimed are supported by valid electronic tax invoices Allowing unrestri...
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NSSF Changes Explained: What’s New, What It Means, and Why It Matters

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  Big Changes Are Here — Is Your Payslip Ready? Kenya’s National Social Security Fund (NSSF) reforms are no longer just policy talk — they are actively reshaping payslips, payroll costs, and retirement planning across the country. Following the full operationalisation of the NSSF Act, 2013, contribution rates and pensionable income thresholds have increased significantly, with further changes lined up for 2026. At RWK Africa, we break it down for you — clearly, practically, and with impact.   What Has Changed Under the NSSF Regime? The NSSF Act, 2013 introduced a two-tier contribution structure, which is being implemented gradually: Tier I (Mandatory – Lower Earnings Limit) Covers the first band of pensionable income Contributions are compulsory for all employees  Tier II (Upper Earnings Limit) Applies to earnings above Tier I Can be remitted to NSSF or an approved private pension scheme (subject to RBA approval) Recent and Upcoming Incr...
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Spotlight: Softening Tax Collections from Land and Share Deals

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Recent reports highlight an emerging challenge facing the Kenya Revenue Authority (KRA): tax revenues from land transactions and private share deals are under pressure due to rising legal disputes on capital gains tax (CGT) timing and applicability.   What’s Driving the Disputes? The core contention lies in when CGT becomes payable. KRA insists tax is due when full payment is made, irrespective of when contracts were signed or registered. Taxpayers counter that liability arises when the sale contract is executed, and payment occurs—not during later administrative formalities such as registration or stamping. This divide intensified after the January 2023 CGT rate hike from 5% to 15%, with taxpayers disputing KRA’s retrospective application of the new rate to transactions spanning that period.   Court Ruling Update: Haria v Commissioner of Domestic Taxes (2025) A pivotal High Court ruling sided with taxpayers, affirming that CGT triggers at the point of sale and payment, not re...
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KRA’s New Tax Surveillance System: Balancing Compliance with Privacy

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  In a landmark move set to transform Kenya's public finance landscape, the Kenya Revenue Authority (KRA) has integrated its tax collection infrastructure with four major government systems, enhancing its ability to monitor payments to civil servants and suppliers in real time.  This strategic integration is a cornerstone in the country’s broader digital governance and tax reform agenda. 🔍 System Integration at a Glance The new linkage connects: iTax – KRA’s digital tax platform. IFMIS – Manages budgeting, procurement, and payments. GHRIS – Handles civil servant payroll and HR data. CBK Payment System – Monitors government disbursements. Objective : To detect under-declaration of income, identify ghost workers, and curb tax evasion by aligning actual payments with declared earnings and tax filings.   ⚠️ Concerns from Legal and Business Circles Privacy and Data Protection : The integration gives KRA access ...
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Bolt Shifting VAT Burden to Drivers & Implications for Taxpayers in Kenya

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  Understanding the VAT Shift Bolt, the Estonian ride-hailing firm, has recently shifted the 16% Value Added Tax (VAT) burden to its drivers, citing regulatory compliance with Kenya Revenue Authority (KRA) guidelines. Previously, Bolt absorbed this cost since the introduction of digital marketplace tax regulations in 2023. This move reflects Bolt's commitment to adhering to tax laws but has sparked concerns among drivers and stakeholders.
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KBL Secures Major Victory in Sh486 Million Tax Dispute with KRA

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  Kenya Breweries Limited (KBL) has successfully overturned a Sh486 million tax demand by the Kenya Revenue Authority (KRA) following a four-year legal battle. The Tax Appeals Tribunal ruled in favour of KBL on March 21, 2025, finding that the tax assessment was incorrect and excessive. The dispute stemmed from KRA’s classification of fermented apple fruit concentrate, a raw material used in producing KBL’s Tusker Cider, as a finished alcoholic beverage subject to higher import duties. The tribunal determined that KBL had provided sufficient evidence to prove that the concentrate was a raw material, not a finished product, and was therefore eligible for excise duty relief. This ruling aligns with previous decisions, including a 2022 High Court judgment affirming the tribunal’s classification of apple concentrate under tariff code 2106.90.20, which attracts a lower duty rate of 10%.
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KRA Launches Three Trade Facilitation Hubs to Ease Cargo Transit, Strengthen Regional Trade

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  The Kenya Revenue Authority (KRA) has recently inaugurated three trade facilitation hubs in Kainuk, Lodwar, and Kakuma, aiming to enhance cargo transit efficiency and bolster regional trade along the Northern Corridor. This strategic initiative seeks to improve trade facilitation and compliance, unlock business opportunities in Turkana County, and reinforce Kenya's position as a hub for international and regional trade. These new centers are expected to alleviate congestion at the Malaba and Busia border posts and significantly reduce transit times for cargo moving from Mombasa to South Sudan. By hosting KRA staff, including the Rapid Response Unit and Enforcement teams, the facilities aim to ensure the safe movement of goods, addressing challenges such as robberies, smuggling, and cargo dumping along the corridor. Dr. Lilian Nyawanda, KRA's Commissioner for Customs and Border Control, emphasized that the primary objective of these centres is to provide legitimate trade-r...
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