Effective May 2026, the Kenya Revenue Authority (KRA) is integrating iCMS export data with iTax to automatically prefill VAT returns, eliminating manual declaration of zero-rated exports to tighten refund scrutiny. Exporters must use eTIMS-compliant invoices for validation, as non-validated, manual entries will be disallowed for VAT refund claims.

Introduction to KRA’s New System

In May 2026, the Kenya Revenue Authority (KRA) is set to implement a pivotal change by integrating the ICMS export data with the iTax system. This modification aims to automatically prefill VAT returns, thereby eliminating the tedious manual declaration process for zero-rated exports. The implementation of this system is expected to enhance the efficiency and accuracy of VAT reclaim processes.

Impact on Exporters

This integration has significant implications for exporters. Effective utilization of the Electronic Tax Invoice Management System (ETIMS) compliant invoices is crucial for validation. As part of the ongoing efforts to tighten refund scrutiny, KRA will disallow any non-validated, manual entries in VAT refund claims.

Conclusion: A Step Towards Streamlined Processes

The move to integrate ICMS export data with iTax signifies a crucial step towards streamlining VAT processes in Kenya. Exporters must adapt to these changes by ensuring compliance with the new requirements. Staying informed about these modifications will allow businesses to navigate the evolving tax landscape effectively. Adopting ETIMS-compliant invoicing is not just a legal requirement but a necessary evolution in the realm of export VAT refunds.

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Pauline Ochanda

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