What the Tax Procedures Act covers
The Tax Procedures Act is the framework law for how taxes are administered in Kenya. Rather than setting specific tax rates, it governs the process: how you register, what records you must keep, how and when you file returns, how KRA assesses tax, and the penalties and interest that apply when obligations are not met.
For an everyday business, it is the legal backbone behind eTIMS. The requirement to keep records, the consequences of not issuing compliant invoices, and the penalties for non-compliance all sit within this framework. You do not need to be a lawyer, but it helps to know that eTIMS compliance is not arbitrary; it is how you stay on the right side of a law that gives KRA real powers to review and penalise. For the exact provisions, retention periods and penalty amounts, refer to the Act itself and confirm the current position with KRA, as it is amended over time.
Get this right and it runs quietly in the background of your business. Get it wrong and you risk rejected invoices, disallowed expenses for your customers, and exposure during a KRA review under the Tax Procedures Act. Confirm the current rules and any penalty amounts with KRA, as they change.
Compliance is not extra admin if the system does it for you on every transaction.
How to stay on the right side of it
A practical path for a Kenyan business. Work through it in order.
- 1
Register and keep your details current
Maintain an active KRA PIN and correct registration, since registration obligations sit within the Act.
- 2
Keep proper records
Keep your eTIMS sales and purchase records for the required period, as record keeping is a core obligation under the Act.
- 3
File accurate returns on time
File your returns by the deadlines from reconciled data, since late or inaccurate filing attracts penalties and interest.
- 4
Issue compliant invoices on every sale
Recording sales through compliant eTIMS invoices is how you meet the documentation the framework expects.
- 5
Keep reconciled records
Reconcile what you issue and receive as you go, so any reporting and filing summarise records you already hold rather than a month-end reconstruction. KRA can review records going back several years.
- 6
Confirm the current rules with KRA
Rates, thresholds, exemptions and deadlines change. Before relying on a specific figure, confirm the current position at kra.go.ke or with your tax adviser.
Common mistakes to avoid
Assuming penalties are negotiable or rare
The Act gives KRA real powers to assess and penalise. Treat compliance as the cheaper path, not an optional one.
Not keeping records for the required period
Record keeping is a legal obligation, and KRA can review going back years. Confirm the retention period and meet it.
Relying on summaries instead of the Act
For exact provisions and amounts, the Act and KRA are the source. Plain-English summaries help you understand, not for precise figures.
Waiting for a deadline before getting compliant
Every uncompliant transaction is a gap you have to explain later. Getting compliant now is cheaper than catching up under pressure.
Relying on a system that cannot work offline
Connectivity is not guaranteed everywhere in Kenya. Use a system that records offline and transmits to KRA when the connection returns, so you never fall out of compliance during an outage.
An owner understands the why
An owner in Nairobi saw eTIMS as just another hassle until a tax adviser explained that the requirement, and the penalties behind it, came from the Tax Procedures Act, the law governing how tax is administered.
Understanding that compliance was a legal obligation with real consequences, not an optional extra, the owner made sure invoices were compliant, records were kept and returns were filed on time.
The shift in mindset, from hassle to legal backbone, made compliance a settled habit rather than something to cut corners on.
Trading without eTIMS-compliant tax invoices risks KRA penalties, blocked VAT input claims for your customers, and receipts a business buyer cannot expense.
Veira signs every sale to KRA eTIMS automatically, so each receipt is compliant the moment it prints, with no separate device to reconcile.
How Veira handles this for you
Veira is built for Kenyan businesses. It issues compliant KRA eTIMS invoices automatically on every sale, applies the right tax treatment per item, captures the buyer KRA PIN for business customers, keeps your records reconciled and ready for filing, and reconciles M-Pesa and Pochi payments to each sale.
It runs on a free handheld terminal or the phone you already own, keeps working offline, and runs from KES 2,999 a month with a free terminal and a 30-day money-back guarantee. See how Veira works, or book a free demo.
Frequently asked questions
What is the Tax Procedures Act in Kenya?
How does the Tax Procedures Act relate to eTIMS?
What penalties does the Act provide for?
How long must I keep records under the Act?
Do I need to read the whole Act?
Does Veira handle this automatically?
How much does eTIMS-compliant software cost?
the Tax Procedures Act in Kenya comes down to recording the right thing, the right way, through a compliant system, and Veira does exactly that without extra work. See how Veira works, or book a free demo. Always confirm current KRA rules and rates at kra.go.ke, as they can change.