KRA office/fileThe Kenya Revenue Authority (KRA) says businesses should maintain accurate and up-to-date stock records as it moves to implement a stock management functionality under its electronic invoicing system.
In a public notice issued on Friday, September 4, KRA announced that all taxpayers engaged in business are required to maintain proper stock records while using the Tax Invoice Management System (TIMS) and electronic Tax Invoice Management System (eTIMS), in accordance with the law.
The authority said the records should provide a clear account of goods as they move through a business, covering stock purchased or received, sold, transferred, returned, adjusted or otherwise disposed of.
“Accurate stock management will support compliance with tax obligations and improve the accuracy of tax returns and reporting,” KRA said.
The requirement comes as the authority prepares to roll out the stock management functionality for electronic invoicing, which is expected to give businesses a more structured way of recording and tracking the movement of goods.
KRA said it will hold consultative engagement forums with the business community and other key stakeholders to support the implementation of the functionality.
The forums, expected to begin in September 2026, will provide an opportunity for businesses and other stakeholders to understand how the stock management functionality will work and seek clarification on its implementation.
They will also allow taxpayers to raise challenges they may encounter and submit recommendations that could inform improvements to the system.
The Taxman encouraged taxpayers and relevant stakeholders to participate actively in the consultations, noting that their feedback would help ensure the functionality is implemented effectively and with minimal disruption to business operations.
The authority said the stock management system is intended to improve the accuracy of business records while supporting compliance with tax obligations.
Businesses will therefore be expected to ensure their stock records accurately reflect changes in inventory throughout their operations.
KRA's move forms part of its wider efforts to strengthen electronic invoicing and improve the quality of information available for tax reporting.
With the stock management functionality, the taxman is now seeking to bring inventory movements into the electronic invoicing framework.
KRA said it will engage businesses before and during the implementation process to identify practical challenges and determine whether adjustments are required.
"KRA encourages all taxpayers and relevant stakeholders to actively participate in the consultations and share their views to help ensure that the stock management functionality is implemented effectively and with minimal disruption to business operations," the notice added.
The Commissioner for Micro and Small Taxpayers said taxpayers requiring clarification or support can contact the KRA Contact Centre or use the authority's designated stakeholder engagement channels.
KRA also reminded taxpayers that compliance with the stock management requirements would form part of their broader tax obligations.
The authority concluded by appreciating taxpayers' cooperation and commitment to tax compliance as it works with stakeholders to implement the stock management functionality.
The notice comes at a time when businesses continue to adjust to increased digitisation of tax administration, with KRA increasingly relying on electronic systems to capture transaction and tax data.
