Kenya Revenue Authority (KRA) leadership has held a consultative meeting with members of the Eastleigh Business District Association (EBDA) to address concerns raised by the business community regarding challenges affecting tax compliance in the area.

Among the key issues highlighted was the adoption of the Electronic Tax Invoice Management System (eTIMS), which has posed challenges for traders operating in Eastleigh. The gap in issuance of eTIMS-compliant invoices has also affected businesses across the country that source goods from Eastleigh, limiting their ability to claim legitimate business expenses due to lack of supporting documentation.

Speaking during the engagement, Commissioner for Micro and Small Taxpayers, Mr George Obell, noted that low uptake of eTIMS and limited issuance of invoices in Eastleigh have contributed to low levels visibility, hence non-compliance by 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

He added that KRA has committed to providing end-to-end support to traders, including PIN registration, tax filing assistance, eTims onboarding and guidance on tax payments to ensure full compliance.

The meeting also highlighted language barriers, complex tax processes, and limited access to KRA service points as key impediments to compliance. EBDA Secretary General, Mr. Omar Hussein, noted that many traders in Eastleigh are not conversant with official languages, creating a gap in understanding tax obligations. He called on KRA to deploy officers proficient in local dialects to improve communication and enhance compliance. He also 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. He further announced plans to collaborate with mall management in Eastleigh to establish KRA service desks within business premises, including inside the malls, making it easier for traders to access services and comply with tax requirements. 

“KRA is committed to supporting traders, and we will provide the necessary facilitation and guidance to ensure that every business understands and meet its responsibilities, including registration, filing and paying their taxes,” he said.

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, noting that eTIMS enhances transaction visibility and promotes voluntary compliance. She also pointed out that KRA had rolled out a USSD solution (*222#5#) which simplified tax registration, eTIMS on boarding, tax payment, and filing, among others.

On his part, EBDA Chief Executive Officer, Mr. Mohammed Adan, expressed the business community’s readiness to partner with KRA in promoting tax compliance. He confirmed that EBDA will support the establishment of KRA service desks in malls across Eastleigh and assist in raising awareness on the importance of tax compliance.

Mr. Adan commended KRA for its facilitative approach, noting that the Authority’s willingness to engage and educate traders before enforcement demonstrates a commitment to building trust and cooperation.

As an outcome of the engagement, KRA will this month roll out a vibrant on-ground tax compliance support programme in the Eastleigh area aimed at assisting businesses to uphold compliance. The initiative will see KRA officers deployed across the Eastleigh business district to support traders in registering for tax obligations, as well as educating them on how to file and pay their tax returns.

The programme underscores KRA’s continued commitment to promoting equity in the tax system and expanding the tax base through enhanced stakeholder engagement, targeted taxpayer education, and improved service delivery.

COMMISSIONER MICRO & SMALL TAXPAYERS