Uproar On KRA Demanding Kenyans To Explain Not Generating Invoices on eTIMS

Photographer and former radio personality, Marcus Olang' on Thursday, May 16 called out the Kenya Revenue Authority (KRA) after receiving an email from the taxman seeking an explanation for failing to transmit an invoice through the electronic tax invoices (eTIMS) system for the month of April.

The taxman wrote to Olang' on Thursday morning seeking clarity on the matter, though commending him for adopting the eTIMS system for easy verification of transaction records and specifically proof of client invoicing.

"Dear Taxpayer, Kenya Revenue Authority (KRA) recognizes and appreciates your invaluable contribution to the Government of Kenya's revenue mobilization and is intent on making tax compliance a delightful and convenient experience for you. We commend you for your adoption of eTIMS.

"I have however noted that you have not transmitted invoices via eTIMS for month of April 2024 on your Individual PIN," read the email in part shared by Olang' on his X account.

KRA thus demanded the photographer to provide an explanation as to why he had not been transmitting through eTIMS by close of business on Friday, May 24, adding "We appreciate your prompt attention to this matter, and we look forward to your timely response."

In response, Olang' claimed that KRA was ignoring the woes of Kenyans amidst tough economic times and harassing businesses and individuals who have adopted the eTIMS platform.

"Guys. Hebu kujeni muangalie hii nanzenz. Uko hapo umekula ngori, halafu KRA ndio hao na "Fala hii, hebu kuja utuambie kwa nini umesota." (Come look at this nonsense. You are out here struggling then KRA are there with the "Foolish person, come and tell us why you are broke").

"You think you'll get more people to onboard if the few that are already on eTIMS are already being harassed like this? Gutter nonsense," he ranted.

He further expressed fault with proposals contained in the Finance Bill 2024 to amend the Data Protection Act, 2019, which would grant KRA unrestricted access to information from various entities without a court warrant, meaning such a scenario would ignite a war between Kenyans and the taxman regarding their finances.

"Again: If they're already harassing people simply for onboarding onto eTIMS, imagine if they are exempt from Data Privacy as Finance Bill 2024 proposes. Take a moment to imagine the horror of an unknown number calling you about your mobile money messages," he continued.

Despite KRA yet to respond to Olang's claims by the time of publishing this story, his post on X, which was viewed more than 217,500 times, sparked uproar, with Kenyans faulting KRA for failing to consider their current state of financial affairs.

In particular, another user shared a screengrab of an email he got from KRA which was identical to Olang's.

"Creatives are not getting gigs in this economy because of how govt policies have messed up businesses in general. Businesses have drastically reduced budgets. Then you are expected to explain why you are not generating invoices. Can't generate invoices if you aren't getting work," wrote Potentash.

"We are now required to explain our business circumstances to KRA? Only someone who has never built anything and has only taken the hard work and sweat of others can be this dense," another user weighed in.

The new law proposes to give the taxman powers to demand that taxpayers integrate eTIMs into their invoicing process, or risk up to Ksh2 million in penalties for non-compliance. Given the slow uptake of the system by SMEs, this particular proposal seems aimed at pushing for compliance by small businesses.

Controversially, the bill also grants KRA certain exemptions to data protection laws, and if passed, it would amend the law to allow disclosure where “necessary for the assessment, enforcement or collection of any tax…”

In addition to data protection concerns, the eTIMS system, for example, has been an issue for the medical profession where services carry a high expectation of privacy.