Prolific Business Consultants

KRA’s New Tax Return Validation: Are Your Records Ready?

The Kenya Revenue Authority (KRA) has introduced enhanced validation for Income Tax Returns that took effect on 1st January 2026.

Your declared income and expenses will now be automatically validated against eTIMS, Customs, and Withholding Tax data.

What this means for your business:

✔ Data consistency is critical

Expenses and purchases must align with eTIMS records and other KRA data sources.

✔ New treatment for accounting adjustments

Items such as accruals, prepayments, deferred income, and WIP may require additional disclosure and adjustments in your returns.

✔ Manual & non-eTIMS expenses

New provisions are being considered to allow claims for genuine business expenses not captured through TIMS/eTIMS.

✔ VAT-inclusive expenses for non-VAT taxpayers

Non-VAT registered businesses may claim VAT-inclusive costs as part of their expenses.

✔ Invoice discrepancies

Erroneous or outlier TIMS/eTIMS invoices will be handled case-by-case through your KRA Tax Service Office (TSO).

⚠ Early preparation is key. Misaligned records may delay or flag your 2025 tax return during validation.

Let’s make sure your records are compliant and reconciled before filing season.



Book a consultation with our team today | [email protected] | 0727887000

www.prolificbusiness.co.ke

Profit doesn’t happen by chance. It happens when businesses track, manage and understand their numbers.

Profit Isn’t Luck—It’s Numbers in Action: When you understand your numbers, you gain clarity on what is working, what needs improvement, and where your business can grow more profitably.

www.prolificbusiness.co.ke

Big tax relief for Kenyan businesses! The special table that has been dreaded by businesses and tax practitioners is gone.

This marks a major step toward simpler and more predictable tax processing.
This change means:

✅ Less compliance stress
✅ Faster, clearer tax processing
✅ Better certainty for businesses

⚠️ Note: Only a small category of “missing trader” cases linked to flagged VAT fraud may still fall under the Special Table. Most taxpayers are completely in the clear.

Not sure where your PIN stands? Our team will quickly review your status and make sure your compliance is airtight.

Get in touch today and stay ahead of the change.

Book a consultation with our team today | [email protected] | 0727887000

In The News

Kenya’s Treasury Sets New Conditions Before Cutting Taxes

Before any tax cuts happen, the government says it must first:

✅ Expand the tax base by bringing more taxpayers into the system
✅ Improve revenue collection with stronger compliance efforts
✅ Ensure Kenya’s fiscal sustainability remains solid

If you want to understand what this means for your business or payroll, we’ll help you

Book a consultation with our team today | [email protected] | 0727887000

www.prolificbusiness.co.ke

How To Track Your Cash Flow Like a Pro

Cash flow is the heartbeat of your business — if you can’t understand it, you can’t grow it. Here’s how to stay on top:

• Record every income and expense
• Categorize and analyze your transactions
• Forecast for the next 3–6 months
• Monitor trends and spot issues early

When you understand your cash flow, you make smarter decisions, avoid surprises and keep your business thriving.

Take control of your business finances and make every shilling count

Book a consultation with our team today | [email protected] | 0727887000

www.prolificbusiness.co.ke

Happy New Week

“If you can’t see your numbers clearly, you can’t grow your business confidently.”

When your books are clear and up-to-date, you can spot opportunities, control costs, plan investments and make strategic decisions with confidence for sustainable growth.

www.prolificbusiness.co.ke

Women inspire growth, ignite change and transform communities. Today we honor you.

Happy International Women’s Day 2026

Which of these accounting basics would you like to understand clearer?

Book a consultation with our team today | [email protected] | 0727887000

📌 March 2026 Tax Deadlines to Note:

🗓 Due by 9th March 2026

• PAYE, Affordable Housing Levy & NITA returns and payments (February 2026)

🗓 Due by 20th March 2026

• PAYE on Directors’ Bonuses (FY ended 31st December 2025)
• VAT, Capital Gains Tax, Excise Duty, Monthly Rental Income Tax & Standard Levy (February 2026)
• 1st Instalment Tax (FY ending 31st December 2026)
• 2nd Instalment Tax (FY ending 31st August 2026)
• 3rd Instalment Tax (FY ending 31st May 2026)
• 4th Instalment Tax (FY ending 28th February 2026)

Within 5 Working Days of Deduction

• Withholding Income Tax
• Withholding VAT
• Withholding Rent

🗓 Due by 31st March 2026

• Balance of Tax (FY ended 31st December 2025)
• Advance Motor Vehicle Tax (FY beginning 1st March 2026)

Timely filing = Peace of mind ✔️
Late filing = Penalties + Interest ❌

Need help filing, calculating installments or staying compliant?

5 Golden Rules of Accounting

The Accounting Equation
Assets = Liabilities + Equity

The Revenue Recognition Principle:
Record revenue when it is earned, not necessarily when cash is received.

The Expense Recognition Principle
Match expenses to the revenue they generate, recording them in the same accounting period.

The Cost Principle
Initially record assets at their historical cost, not their current market value.

The Full Disclosure Principle
Disclose all relevant financial information and potential risks in financial statements and footnotes.

Let our expert accounting team ensure your business follows every golden rule with confidence and clarity. Contact us today for reliable, compliant financial guidance.

Book a consultation with our team today | [email protected] | 0727887000