Section 43

Keeping of records 

(1) Every registered A person shall, for the purposes of this Act, keep in the course of his business, a full and true written record, whether in electronic form or otherwise, in English or Kiswahili of every transaction he makes and the record shall be kept in Kenya* for a period of five years from the date of the last entry made therein. (TaxLAA-No1-2020 wef-25April2020) (Finance Act 2023 wef 1st-July-2023 S36*)

(2) The records to be kept under subsection (1) shall include -

• (a) copies of all tax invoices and simplified tax invoices issued in serial number order; 
• (b) copies of all credit and debit notes issued, in chronological order; 
• (c) purchase invoices, copies of customs entries, receipts for the payment of customs duty or tax, and credit and debit notes received, to be filed chronologically either by date of receipt or under each supplier’s name;
• (d) details of the amounts of tax charged on each supply made or received and in relation to all services to which section 10 applies, sufficient written evidence to identify the supplier and the recipient, and to show the nature and quantity of services supplied, the time of supply, the place of supply, the consideration for the supply, and the extent to which the supply has been used by the recipient for a particular purpose; 
• (e) tax account showing the totals of the output tax and the input tax in each period and a net total of the tax payable or the excess tax carried forward, as the case may be, at the end of each period; 
• (f) copies of stock records kept periodically as the Commissioner may determine; 
• (g) details of each supply of goods and services from the business premises, unless such details are available at the time of supply on invoices issued at, or before, that time; and 
• (h) such other accounts or records as may be specified, in writing, by the Commissioner. 

(3) Every person required under subsection (1) to keep records shall, at all reasonable times, avail the records to an authorized officer for inspection and shall give the officer every facility necessary to inspect the records.

(4) For the purposes of this section, the Commissioner may, in accordance with the regulations, require any person to use an electronic tax register, of such type and description as may be prescribed, for the purpose of accessing information regarding any matter or transaction which may affect the tax liability of the person.

(5) A person who contravenes any of the provisions of this section commits an offence.

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