Let's talk about Withholding Tax (WHT). It's pretty simple on paper: you pay a supplier, withhold a percentage, and send it to KRA. If they are a resident, it's an advance tax they claim later. If they are a non-resident, it's a final tax.

But in 2026, KRA added a massive trap. They call it the eTIMS mandate.

If you pay a local vendor, withhold their tax, but you do NOT have a valid eTIMS-compliant invoice with a QR code for that transaction? KRA will completely disallow that entire business expense.

Think about that. You actually spent the money. You have the bank statement. But because your supplier isn't set up on eTIMS, you get penalized and your year-end tax bill goes up. Oh, and if you forget to withhold the tax? The liability shifts to you. You have to pay KRA out of your own pocket.

Here are the standard resident rates you need to watch: Management & Professional Fees: 5%. Consultancy & Agency: 5%. Contractual (Construction): 3%. Marketing & Ads: 5%. All of this must be remitted by the 20th.

If you are tired of chasing suppliers for compliant invoices and worrying about audit penalties, we can automate your entire backend with localized systems.