On 14th February 2020 Kenya Revenue Authority (KRA) issued a public notice notifying all taxpayers of its intention to undertake a reconciliation exercise on Taxpayer’s legacy ledger balances, with the intention to transfer these balances to the iTax system.

Procedures before transfer The KRA will extract ledgers belonging to the taxpayers and issue letters with ledgers attached requiring Taxpayers to verify the ledger balances. Although it is unclear how far back the exercise will go, we assume that KRA will pull balances as far back as when the taxpayers were registered for tax purposes.

The taxpayer will then be required to verify the balances and where there is a conflict with their own records provide documentation to support their case. The verification exercise will begin with taxpayers in the Large and Medium Tax Payer Offices and later roll out to other taxpayers.