The Kenya Revenue Authority (KRA) has moved to assure taxpayers that their data is secure within the electronic tax invoice management system (eTims).

This comes amidst public concerns surrounding potential breaches of sensitive personal information on the platform.

"The details captured in the invoices are transaction details that are normally captured in any invoice/receipt issued to a customer and need not include confidential information of taxpayers," clarified the tax authority.

KRA emphasized its commitment to data confidentiality, adhering to the provisions outlined in the Tax Procedures Act (2015).

This statement follows public feedback received through various media channels regarding the eTims implementation.

Read More

  1. SBM Kenya entangled in Sh737 million tax dispute with KRA over FCB deal
  2. Kenyans face higher fringe benefits tax amid economic uncertainty
  3. Anne Waiguru signs landmark legislation to combat illicit alcohol trade in Kirinyaga

The feedback highlighted the confusion and misunderstandings surrounding the system.

Doctors Express Patient Confidentiality Concerns

The Kenya Medical Association (KMA) recently voiced concerns about the potential forced disclosure of patient data through eTims.

KMA President, Simon Kigondu, issued a seven-day ultimatum earlier this week, demanding the government suspend the tax payment system within the medical sector.

Failure to comply would be met with a nationwide strike.

Kigondu emphasized the doctors' oath, which includes safeguarding patient confidentiality. He argued that requiring patient data disclosure for tax compliance violates the Constitution.

"The KRA and Treasury mandarins appear unaware of the constitution and the laws that govern medical practice in the Republic of Kenya," stated Kigondu.

"They are putting taxes before health and money before life."

He further questioned the long-term tax revenue implications if people avoid seeking medical care due to confidentiality concerns.

KRA Clarifies Exemptions and Onboarding Deadlines

The deadline for all businesses to be onboarded onto eTims remains March 31st, 2024. Introduced through the Finance Act (2023), the system aims to improve tax collection visibility.

KRA recently reversed its initial decision to exempt farmers and small businesses with a turnover below Sh5 million from generating electronic invoices.

Instead, they launched "eTims Lite," a new solution aimed at facilitating mass onboarding within Kenya's informal sector.

The Tax Procedures (Electronic Tax Invoice) Regulations (2023) initially outlined nine exempt transactions, including supplies by businesses with a turnover below Sh5 million.

This exemption provided relief for farmers and small businesses.

However, KRA has since rescinded this exemption. Other transactions still exempt from eTims include emoluments, imports, interest, airline passenger ticketing, accounting adjustments, financial institution fees, and services provided by foreign entities without a permanent Kenyan establishment.