KNCCI urges review of Sh2mn penalty for eTMIS non-compliant MSMEs » Capital News

NAIROBI, Kenya, May 20 – The Kenya National Chamber of Commerce and Industry (KNCCI) has called for a review of the 2 million Shillings penalty for Medium and Small Micro Enterprises (MSMEs) that fail to comply with the Electronic Tax Invoice Management System (eTIMS).

KNCCI President Erick Rutto criticized the penalty proposed in the Finance Bill 2024 as punitive, warning that it would negatively impact small business owners.

He attributed the slow adoption of the eTIMS system by MSMEs to a lack of adequate information and training.

The KNCCI is urging the government to prioritize capacity-building initiatives to help MSMEs effectively adopt and comply with eTIMS.

In March, the Kenya Revenue Authority warned that businesses not yet on the eTIMS platform would be ineligible for tax refunds and could face penalties double the amount of taxes evaded.

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