We received a call recently.
Yes… from KRA.
And yes, it unsettled us.
Because when you see “KRA” calling, you can never be quite sure what the taxman is calling to say next.
This one was about an issue from 2022.
But we didn't panic.
Why?
Because we had the records.
The reconciliations.
The audited financial statements.
The supporting documents.
We could go back, pull the information and understand exactly what had happened.
And it reminded me of something:
We don't keep records because management enjoys seeing neat files.
We keep them because they are our line of defence when someone asks us to explain the numbers.
Because the taxman can look backwards.
A recent Tax Appeals Tribunal case involving Vijay Kumar Shamji Patel is a good reminder of this. KRA issued a KSh 67.9 million assessment in 2025 covering the 2019–2022 years, partly based on the disallowance of losses originating from 2014. The Tribunal ultimately found that the reopening of the older periods was time-barred in the circumstances and set aside the objection decision.
But here's the practical lesson for a business owner:
Don't wait for KRA to ask before you start looking for your records.
👉 Reconcile your bank.
👉 Reconcile M-Pesa.
👉 Keep your invoices.
👉 Keep your tax records.
👉 Keep your ledgers clean.
👉 Keep your financial statements.
👉 Keep the supporting documents that explain your numbers.
Because when that call comes, you don't want to start asking:
“Where is that invoice?”
“Did we actually pay this?”
“Which year was this?”
You want to be able to say:
“Give me a moment. Let me pull the records.”
That's what good record-keeping gives you.
Not just neat books.
Not just compliance.
Confidence.
Prepare for the taxman before the taxman comes calling.
That's not fear.
That's good financial housekeeping.