{"id":169,"date":"2026-03-12T22:53:53","date_gmt":"2026-03-12T22:53:53","guid":{"rendered":"https:\/\/kkcoeastafrica.co.ke\/article\/?p=169"},"modified":"2026-03-24T15:54:56","modified_gmt":"2026-03-24T15:54:56","slug":"kra-backtracks-on-the-controversial-special-table-a-turning-point-for-taxpayer-rights-in-kenya","status":"publish","type":"post","link":"https:\/\/kkcoeastafrica.co.ke\/article\/kra-backtracks-on-the-controversial-special-table-a-turning-point-for-taxpayer-rights-in-kenya\/","title":{"rendered":"KRA Backtracks on the Controversial \u2018Special Table\u2019: A Turning Point for Taxpayer Rights in Kenya"},"content":{"rendered":"\n
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Introduction<\/h1>\n\n\n\n
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Through an internal memo dated 10th<\/sup> March 2026, the Kenya Revenue Authority (KRA), through its Compliance Management Division, issued an internal directive instructing KRA officers to remove taxpayers from the \u201cSpecial Table\u201d, a compliance tool that had increasingly drawn criticism from businesses and tax professionals.<\/p>\n\n\n\n

Originally intended to combat VAT fraud and enforce compliance, the VAT Special Table categorized taxpayers for heightened scrutiny. The categories typically onboarded included:<\/p>\n\n\n\n

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  1. Payment Returns without Payments (PRWPs)<\/strong>: Taxpayers who filed returns but did not make payments for six months, where all collection efforts were exhausted, or the taxpayer could not be traced. Exceptions applied for taxpayers on a payment plan or making partial payments.<\/li>\n\n\n\n
  2. TIMS\/eTIMS Non-Compliant Trader<\/strong>s: VAT-registered taxpayers who failed to transition from ETR to TIMS\/eTIMS as required under the Value Added Tax (Electronic Tax Invoice) Regulations, 2020.<\/li>\n\n\n\n
  3. Non-filers<\/strong>: Taxpayers who did not file returns for six months or more.<\/li>\n\n\n\n
  4. Nil filers<\/strong>: Taxpayers filing nil returns for six months or more but with input tax claims. Taxpayers filing nil returns with no input tax claims were excluded.<\/li>\n\n\n\n
  5. Missing Traders<\/strong>: Taxpayers filing and paying VAT but found during audits or investigations to be involved in VAT fraud relating to fictitious input tax claims, or use of fictitious credit notes.<\/li>\n<\/ol>\n\n\n\n

    While the tool was intended to target high-risk taxpayers, it impacted legitimate businesses, restricting VAT filings and blocking input VAT claims, often within the statutory six-month limitation, causing operational and financial challenges.<\/p>\n\n\n\n

    The memo notes that although the system was initially introduced as a compliance control mechanism, its application expanded over time and ended up affecting a significant number of legitimate taxpayers. <\/p>\n\n\n\n

    The directive acknowledged that while the Special Table was initially introduced as a deterrence mechanism against tax evasion and fraud, its application had expanded beyond its intended purpose. Over time, it became the primary tool used to enforce compliance across various tax matters.<\/p>\n\n\n\n

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