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The Kenya Revenue Authority (KRA) has integrated its Integrated Customs Management System (iCMS) with the iTax platform in a move aimed at improving efficiency in customs processing and accelerating tax refunds for businesses.
The integration allows data from imports and exports to flow automatically between the two systems, eliminating duplication and reducing manual verification that has historically slowed down clearance and refund approvals.
KRA says the system linkage will make it easier to validate customs declarations against tax records in real time, enabling faster resolution of discrepancies and quicker processing of legitimate refund claims.
The authority expects the move to significantly reduce delays faced by importers, exporters and manufacturers, while also strengthening compliance and revenue tracking across the supply chain.
How the iCMS–iTax Integration Works
Under the new framework, customs data captured through iCMS will be directly accessible within iTax, allowing tax officers to confirm transactions without requesting additional documents from taxpayers.
This seamless data sharing is designed to improve accuracy, reduce errors and limit opportunities for fraud or misreporting.
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According to KRA officials, the integration is part of a broader digital transformation strategy that includes the rollout of electronic Tax Invoice Management System (eTIMS) and the expansion of prefilled tax returns. Together, these reforms aim to simplify tax administration while lowering the cost of compliance for businesses.
Faster Refunds and Improved Cash Flow for Businesses
KRA has also increased monthly allocations for tax refunds and raised the refund cap per taxpayer, moves intended to address long-standing concerns over delayed payments. Business groups have repeatedly flagged refund delays as a major strain on cash flow, particularly for exporters and manufacturers operating on thin margins.
By aligning customs and domestic tax systems, KRA believes refund claims linked to import and export transactions will now be processed more quickly and transparently. The authority says this will support business growth, improve investor confidence and enhance Kenya’s competitiveness as a regional trade hub.
Stakeholder Engagement and Private Sector Support
The system integration was discussed during engagements between KRA and private sector representatives, including the Kenya Private Sector Alliance (KEPSA) and the Kenya Association of Manufacturers (KAM). Industry players welcomed the move, noting that predictable refunds and faster customs clearance are critical for improving the ease of doing business in the country.
KRA has indicated it will continue working closely with stakeholders to refine the system, address emerging challenges and ensure the integration delivers tangible benefits across the economy.