Mumo

We serve God when we serve others

[Julians Amboko @AmbokoJH]

UPDATE: Kenya's 2025/26 Revenue Outturn

· Total collection stood at Kes 2.844 trillion

· This collection is a 10.57% y/y growth & a 95.55% performance rate (i.e. it missed the target by Kes 132.51 billion

· Exchequer revenue collected stood at Kes 2.568 trillion, agency collection stood at Kes 276.14 billion

· Customs remains the out-performer at 100.8% performance, collecting Kes 988.78 billion

· PAYE collected Kes 598.81 billion, registering 91.8% performance rate & growing 6.7% y/y

· Corporate Income Tax collected Kes 346.07 billion, up 14.0% y/y lifted significantly by financial services performance in the period under review

· Domestic VAT collected Kes 355.26 billion, up 8.5%. The Authority reports that the revision of the rate on petroleum product from 16.0% to 8.0% was a huge challenge in the second half

· Domestic Excise collected Kes 61.85 billion with Excise on betting registering 115.9% performance collecting Kes 16.53 billion

· Collections from the new Significant Economic Presence Tax doubled to Kes 1.61 billion

· Tax debt collection yielded Kes 144.82 billion. ADR resolved 993 cases unlocking Kes 35.06 billion

· Tax base expansion measures are reported to have yielded Kes 9.1 billion

Musings:

· We are witnessing a shift in KRA's reporting of exchequer & agency collections. It is now moving away from front-loading the tax heads & opting to front-load sectoral performance

· In my inference, the authority is seeking to place the spotlight on the need to grow the pie to ensure collection targets align with the reality on the ground

· Agency collections (99.1% performance) have, yet again, offset the softness in exchequer collections (95.2% performance)

[Lawrence Kitema @lawrencekitema]

This is what human beings lack. They give their children everything, making them dependent and less resilient. This mom is teaching us how to raise strong, capable kids who can stand on their own.

[National Construction Authority @ncakenya]

Happy New Financial Year!

The annual renewal window is open from 1st July - 31st July 2026. Log in to your portal account and complete your renewal within this period to maintain an active status. https://t.co/ZfFxTQl0sH

Renew and stay compliant.

[Julians Amboko @AmbokoJH]

President William Ruto this afternoon signed into law the Finance Bill 2026 seeking to raise Kes 98.6 billion worth of additional revenue in the financial year 2026/27.

The Bill sailed through the National Assembly 4 days ago (see quoted tweet).

What are we seeing in the Act?

A quick 🧵on some key take outs from the Vellum

[Julians Amboko @AmbokoJH]

Folks,

Finance Bill 2026 proposed amendments are now out!!

There's a proposal on PAYE bands. Important to flag though that it is not from the Finance & Planning Committee but from Kathiani MPVHon. Robert Mbui.

Delighted that the PAYE proposal lifts from the submission we made as Strathmore Tax Research Centre.

Let's see what happens on the floor of the House.

[Architectural Association of Kenya @Arch_KE]

Joint statement on the intended prosecution of members of the Nairobi City County Urban Planning Technical Committee

[Mungai Kihanya @mungaikihanya]

Adjustments on the cost of electricity have GONE DOWN! Not up as is widely reported....

[Julians Amboko @AmbokoJH]

Finance Bill 2026 makes for an interesting & fairly technical read both from a tax policy & administration standpoint.

A 🧵 on the 11 things that stand out from what we are seeing so far for me.

[Maithya wa Vilivū @MaithyaVilivu]

Attention, folks:
2PM short range updates by the German DWD model:
Heavier rains expected in the #Nairobi Metro area than earlier anticipated. Up to 50mm may fall in some areas, especially Nrb West & Kajiado North in the 6 hrs to midnight. Peak intensity expected btn 6PM & 9PM

[Maithya wa Vilivū @MaithyaVilivu]

Saturday #weather forecast update, #Nairobi #Kenya: We expect the last wave of moderate to heavy rains in Nrb metro area this evening. Short range forecast charts by major models concur in this regard.
From tomorrow into next week, rains subside significantly in the city

[Kwame Owino @IEAKwame]

Folks, flooding in Nairobi is evidence that drainage is poor. That's a public good and whose construction should precede the private good also known as affordable housing.

[BRAVIN YURI @BravinYuri]

If there is one culture shock that truly hit me when I moved to Kiambu, it is this quiet, almost deliberate refusal by neighbours to greet each other unless there is something to gain.

Where I come from, greeting is not strategy. It is not a transaction. It is not a prelude to a favour. It is instinct. It is culture. It is blood. As a Luhya, you greet first. You greet properly. You greet even if you have nothing to discuss. You greet because you have seen another human being and you acknowledge their existence.

A greeting is not small talk. It is recognition. It is respect. It is community.

But here, I have watched doors open and close in silence. Eyes meet and quickly look away. People walk past each other like strangers sharing a bus stop in a foreign country. Then suddenly, when there is a request, a need, a favour to be asked, that is when the warmth appears.

It unsettled me at first. It made me question whether I was doing too much, whether my greetings were unnecessary, whether being open was naïve. But I have come to realise something powerful. Culture shapes instinct. And my instinct refuses to die.

I will greet you whether you respond or not. I will acknowledge you whether you need me or not. Because community does not begin when we want something from each other. It begins when we see each other.

Or just maybe that is the quiet revolution. To greet in a world that only speaks when it wants something.

Have you ever wondered maybe that is why your respective Supreme Beings, never really treat your prayers well because they only go to them when you need favours. And it is to cry about your problems? Do you remember a time you prayed and never mentioned your enemies? Just a solid praise and worship then left it at that.

Maybe they are also traumatized! On a light note though, at the end.

That is why probably people find it hard to help neighbours than strangers? They would watch a neighbour sleep hungry but donate to an anonymous fund drive to contribute for a baby shower for their popular celebrity whom they have never met.

Life!

[Muthoni Njakwe @muthoni_njakwe]

It’s important you know what God says about you.
Bookmark 🔖

1. You shall be the head, and not the tail.
2. You shall be above only, and never beneath.
3. A thousand shall fall at your side, and ten thousand at your right hand; but it shall not come near you. You shall behold the reward of the wicked.
4. The works of your hands shall be blessed.
5. You shall be exactly as the earth permits; blessings shall come upon you and shall overtake you.
6. You shall rise in the place of kings. They that desire to eat your flesh shall stumble and fall.
7. The fullness of your days you shall fulfill.
8. They that are planted in the house of the Lord shall flourish; they shall be fat and flourishing in old age.
9. The path of the just is like a light that shines brighter and brighter unto the perfect day.

[Mwango Capital @MwangoCapital]

KPMG has issued a tax Alert on eTIMS:

—KRA is moving from summary-based reporting to continuous, transaction-level scrutiny by algorithmically reconciling income tax returns against electronic datasets, including eTIMS, withholding tax, and customs data.

—Business expenses that are NOT supported by compliant eTIMS invoices (and not specifically exempt) will be automatically disallowed, regardless of whether the costs were genuine.

—KRA will cross-check declared income against its digital records; any income omitted from returns but reflected in eTIMS or withholding data may be treated as undeclared, triggering upward tax adjustments.

—Taxpayers must ensure all transactions are backed by electronic invoices transmitted with the buyer’s PIN to avoid automatic rejection of expense claims.

—Income declared outside eTIMS data may be treated as undeclared, triggering upward tax adjustments.

—Compliance is required by all companies, partnerships, sole proprietors, professionals, and rental income earners carrying on business in Kenya.

—Specific categories like employee emoluments (PAYE), interest from financial institutions, and airline ticketing are exempt from the eTIMS invoicing requirement, though clear documentation remains critical.

—Businesses should prepare for operational hurdles such as timing mismatches between accounting periods and invoice issuance, as well as non-compliance from informal suppliers or small vendors.

—Taxpayers are advised to conduct regular reconciliations between accounting ledgers and eTIMS data, strengthen supplier onboarding, and embed eTIMS compliance into their procurement workflows

[Mumo @aaronmumo]

@muthoni_njakwe Amen.
Thanking God for January.

[CPA Peter Ndirangu @pitandirangu]

ETIMS CHANGED HOW BUSINESSES OPERATE (BUSINESS MODEL) — NOT JUST HOW THEY INVOICE
-When eTIMS regulations took effect, my clarion call to businesses focused on two non-negotiables:
1. Vet your suppliers for eTIMS compliance
2. Restructure your supply chain and business model to ensure tax compliance

-While a few businesses took this seriously, many remained stuck in the mindset of:

“It’s not possible to have all expenditure on eTIMS.”

-This feedback continues to surface consistently in my Tax Clinics, SME trainings and advisory engagements.

-The reality, however, is uncomfortable but clear:
If your business model cannot support eTIMS-compliant expenditure, your expenses are at risk of being disallowed.

THE CORE PROBLEM: HOW SMEs PAY FOR EXPENSES

-From my observation and experience , most non-compliance does not arise from tax evasion, it arises from informal payment structures that no longer fit within the current tax regime.
The solution to this is not fear, but restructuring how SMEs procure, pay, and contract.

PRACTICAL RESTRUCTURING MEASURES FOR SMEs TO PLANNING THEIR TAXES UNDER eTIMS regime (PRE-VALIDATION ERA)
1. Procurement of Supplies
Avoid “Cheaper plugs” / informal suppliers and instead deal with suppliers who are eTIMS compliant .
The small saving today is not worth a disallowed expense tomorrow.
2. Casual Labour & Services
Instead of engaging and informally Paying technicians, Cleaners, Plumbers and other cashual workers in cash without any documentation and regards to tax compliance , Consider to Formalize the contract or work with Registered Service Providers

3. Communication Costs
Instead of buying Airtime & bundles casually via M-PESA, register for Postpaid Business Lines.
With this ,monthly eTIMS compliance invoice can be issued
4. Transport & Staff Movement
Instead of getting any available service provider (could be your regular Uber / bolt ride) and pay Cash, consider Corporate Accounts with Bolt /uber → One that consolidated monthly invoice
5. Deliveries & Logistics
Instead of getting any available service provider for your deliveries (could be your regular boda boda or the local delivery guy who are Informal ) , Get a Registered Courier Companies Or ensure the rider is eTIMS-registered

If they want your business, they must formalize

FINAL Thought TO SMEs on this matter
-Tax compliance is no longer just an accounting issue , it is an operational decision.
Businesses that restructure early will:
-Protect deductions
-Reduce audit exposure
-Improve financial discipline
-Gain credibility with financiers and regulators

Those that don’t will continue arguing that:
“Compliance is impossible”
until assessments prove otherwise.

#eTIMS #TaxCompliance #SMEsKenya #BusinessRestructuring #Taxplanning
#BusinessOperations #SupplyChain #RiskManagement

[Pesa Wall @PesaWall]

We have gone through the 149-page Kenya Pipeline IPO prospectus.

Here is a summary of what you need to know about the Kenya Pipeline IPO.

1/24

[Mumo @aaronmumo]

@muthoni_njakwe Amen

[Mumo @aaronmumo]

Happy New Year 2026!
3 John 2