The Consumers Federation has filed a legal challenge against Kenya’s Kenya Revenue Authority (KRA) over its eTIMS system, which automatically deactivates businesses that fail to file tax returns. The organization argues that the policy can unfairly prevent companies from operating even after they have fully settled their tax obligations or when no tax is due.
The lawsuit highlights concerns that the eTIMS deactivation process may lead to operational disruptions for businesses, particularly small and medium enterprises, which could face penalties or restrictions despite having no outstanding tax liabilities. The federation claims the system lacks transparency and fails to provide adequate notice or opportunities for businesses to resolve issues before deactivation.
KRA has not yet commented on the legal action, but the case has sparked discussions about the need for clearer guidelines and more flexible enforcement mechanisms in the tax system. The outcome could influence how businesses interact with the tax authority and may lead to policy reforms.
The dispute underscores growing tensions between regulatory bodies and the private sector over compliance procedures and their impact on business continuity.
