Many businesses keep repeating this costly mistake.
They delete old records or assume they no longer need them.
But when KRA asks questions, memory isn't evidence.
1️⃣ You must keep records for 5 years.
Sales records, bank statements, purchase invoices and payroll documents.
Keep the documents that support your tax filings.
2️⃣ Without records, challenging KRA becomes harder.
If KRA questions your declared income, you need evidence to explain the figures.
Bank deposits you can't explain may lead to tax assessments.
3️⃣ Genuine expenses can still be disallowed.
You may have paid the supplier.
You may have incurred the expense.
But without supporting documents, proving your deduction becomes difficult.
Don't wait for an audit to start looking for last year's records.
Keep your financial records organised and accessible.
In a tax dispute, what you can prove matters as much as what actually happened.
Hi, I'm Eliezer Munene, a bookkeeper helping founders keep their books organised, reconciled and useful.
If your financial records aren't giving you that kind of clarity, let's talk.