Finance Act, 2025

What it saysCommentary on the Act reports an increase of the mandatory VAT registration threshold from KES 5,000,000 to KES 8,000,000; KRA's operative guidance continued to apply KES 5M as of our verification date.

What it means for your businessUntil KRA's systems and guidance confirm the new number, planning on 5M keeps you safe: registering voluntarily when unsure is cheaper than a s.95 non-registration penalty.

What it saysSets the legislative direction toward a pre-clearance e-invoicing model (CETIS) in which invoices are validated before transactions complete — following the pattern of Uganda's EFRIS.

What it means for your businessBusinesses have 2026 to get eTIMS-clean before invoice validation moves upstream of the sale. Late adopters will feel it at the till, not at filing.