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eTIMS Penalties 2026 — Exact Figures From the Law
Smart VAT Kenya — Last verified 2026-08-08 against Tax Procedures Act
Internet blogs circulate alarming rumors of arbitrary KES 1 million fines or random KES 500,000 monthly penalties for eTIMS non-compliance. Here is what the enacted law (Tax Procedures Act as amended by Finance Act 2026) actually provides.
Statutory Penalty Breakdown
- Invoice Non-Compliance (TPA s.86): 2x tax due, with Finance Act 2026 minimums of KES 100,000 (companies) / KES 10,000 (individuals).
- System Integration Failure (TPA s.59A(5)): KES 100,000 per month, capped at KES 1,000,000 (TPA s.59A(5)).
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What are the exact eTIMS penalties under Kenyan law in 2026?
Under TPA s.86 (amended by Finance Act 2026), issuing a non-compliant invoice attracts 2x tax due, with Finance Act 2026 minimums of KES 100,000 (companies) / KES 10,000 (individuals). Failing to integrate systems after notice costs KES 100,000 per month, capped at KES 1,000,000 (TPA s.59A(5)).