KAM and DigiTax Convene Manufacturers Over Rising eTIMS Compliance Demands

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By Wilson Amondo 

Kenya Association of Manufacturers (KAM), in partnership with DigiTax, has engaged manufacturers in high-level talks on navigating VAT compliance under the Kenya Revenue Authority’s Tax Invoice Management System (TIMS) and Electronic Tax Invoice Management System (eTIMS).

The industry seminar, held in Nairobi on February 26, 2026, came amid intensified enforcement by the Kenya Revenue Authority (KRA), which has adopted automated, real-time invoice validation to seal revenue leakages and enhance transparency.

The forum, themed Operational Impact and Issues Affecting VAT Compliance Through TIMS/eTIMS, addressed mounting concerns among manufacturers as eTIMS reshapes procurement, supplier management, and financial reporting processes.

Under KRA’s expanded validation framework, income and expenses declared in tax returns are now cross-checked against data transmitted through eTIMS, alongside customs and withholding tax records. 
This shift has elevated VAT compliance from a routine tax function to a core operational risk.

Speaking ahead of the forum, DigiTax Chief Operations Officer Thuku wa Thuku said the transition to data-driven enforcement demands a new compliance mindset.

“eTIMS has moved tax compliance from an annual or monthly exercise to a real-time operational process. Manufacturers can no longer afford manual workarounds or fragmented systems,” he said, noting that the seminar aimed to help businesses understand KRA’s validation criteria and identify risk areas.

Manufacturers cited challenges including system downtimes, complexities in integrating ERP and accounting systems, and ensuring supplier compliance across fragmented supply chains.

KAM emphasized the importance of sustained dialogue between regulators and industry players to prevent unintended penalties on compliant businesses.

“E-TIMS implementation needs to reflect the complex operational realities of production and supply chains. Continuous dialogue is essential to ensure that compliance frameworks do not undermine competitiveness,” the association said.

As companies prepare to file returns for the 2025 year of income in 2026, industry leaders warned that gaps in eTIMS data could lead to tax adjustments and penalties, underscoring the need for proactive compliance strategies.

Established in 1959, KAM represents over 1,300 companies across 14 sectors and operates seven regional offices nationwide, advocating for a competitive policy environment for Kenya’s manufacturing industry.

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