The Kenya Revenue Authority (KRA) issued a public notice on 7 September 2026 that obliges businesses to keep accurate stock records for all goods purchased, received, sold, transferred, returned, adjusted or otherwise disposed of.

The notice links reliable inventory management to tax compliance and states that stakeholder consultations on implementation were to begin in September 2026.

KRA clarifies that a supplier invoice alone does not prove that the correct quantity reached the business in good condition; physical delivery, delivery notes and system entries must all align.

Businesses must record each movement against the correct product and unit, ensuring that opening stock, receipts, sales, returns, transfers, internal use, damage and legitimate adjustments are all documented with supporting evidence.

The guidance does not require that every supplier invoice instantly updates a buyer’s inventory, nor does it impose a universal rule that eTIMS solutions block invoicing when recorded stock reaches zero.

KRA’s Android Paypoint guide outlines how to capture opening stock, accept purchases, and record stock adjustments with a reason and quantity, emphasizing that the process is more detailed than automatic stock updates.

Practical steps for businesses include conducting a physical stock count, recording date, item, unit, quantity and location, and reconciling these figures with the eTIMS system before accepting a starting balance.

Owners should verify how their specific eTIMS solution handles opening stock, purchase acceptance, outages, imports, returns and situations where physical stock exists but the system balance shows zero, by consulting KRA or a certified integrator.

Accurate inventory records help businesses explain stock balances, avoid compliance questions, and can reveal operational issues such as theft, over‑ordering or cash tied up in unsold goods.

Businesses are encouraged to use the announced consultations to raise practical implementation issues, seek clarification on mandatory elements, and obtain guidance on error correction and technical restrictions.