💡 Introduction

A Tax Compliance Certificate (TCC) is one of the most requested documents in Kenya — whether you’re applying for a job, tendering for government work, registering a business, or applying for financing.

Yet thousands of taxpayers in 2025 report the same problem:

“KRA keeps rejecting my TCC application… and I don’t know why.”

If that sounds familiar, this guide will help you understand exactly what KRA checks, why your application may be delayed or rejected, and what you can fix to finally get your TCC approved.

Let’s break down every possible reason — based on the Tax Procedures Act (TPA), KRA internal guidelines, and current 2025 compliance systems such as eTIMS and auto-populated VAT returns.

1. What Is a Tax Compliance Certificate (TCC)?

A TCC is an official confirmation from KRA that:

Your tax returns are filed up to date
You’ve paid all taxes due
You have no outstanding penalties or interests
You’re fully compliant across all tax obligations

A TCC is valid for 12 months, but KRA can revoke it if compliance lapses during that period.

2. What KRA Checks Before Approving Your TCC (2025 Rules)

KRA uses automated system checks across multiple tax heads:

✔️ 1. ALL returns must be filed

This includes:

Income Tax (individual or company)
VAT
PAYE
Withholding Tax
Turnover Tax
CGT
DST (if applicable)

Even a single missing return automatically blocks your TCC.

✔️ 2. ALL taxes must be paid

If you filed but did not pay, the system rejects your TCC until you:

Pay the full amount OR
Enter a valid payment plan with KRA

✔️ 3. You must not have unresolved penalties or interest

Any of the following will block your TCC:

PAYE penalties
VAT late filing penalties
Income Tax interest
WHT penalties
Non-filing interest
eTIMS/Auto-Populated VAT mismatches

✔️ 4. KRA checks eTIMS and VAT consistency

With the full rollout of eTIMS and the Auto-Populated VAT Return, KRA checks:

Whether you issue eTIMS invoices
Whether your declared sales match eTIMS sales
Whether your VAT claims are valid

If there are mismatches or untransmitted invoices, the TCC is held until corrected.

✔️ 5. Employer obligations (PAYE)

For employers, KRA checks:

Whether PAYE returns were filed monthly
Whether the correct PAYE was remitted
Whether employee PINs and payroll match consistency rules

PAYE errors are one of the top reasons for TCC rejection.

✔️ 6. Withholding Tax (WHT) compliance

If you made payments requiring withholding tax and did not deduct/remit it, you automatically fail KRA’s compliance check.

✔️ 7. Missing or incorrect CGT

CGT is payable before property transfer is completed.
If KRA detects land or property transactions linked to your PIN with missing CGT returns, TCC is blocked.

✔️ 8. Active audits or investigations

If KRA is reviewing your returns or conducting a desk audit, TCC approval may be paused until the audit outcome is issued.

3. Common Reasons Your TCC Is Being Rejected

Here are the real issues taxpayers face — in simple language:

1. You haven’t filed ALL your returns

Even one missing return (e.g., PAYE for a single month in 2022) causes rejection.

2. You filed Nil Returns when income existed

KRA now checks bank deposits, eTIMS invoices, imports, and M-PESA flows.
If the system detects activity → Nil Return becomes invalid → TCC rejected.

3. You have outstanding penalties or interest

KRA will not approve a TCC if even KSh 10 is outstanding.

4. You have PAYE errors

For employers, KRA rejects TCC if:

Employee PIN doesn’t match name
Wrong PAYE calculations
Late remittances
Payroll inconsistencies

5. VAT inconsistencies or non-use of eTIMS

This includes:

Claiming VAT from blocked suppliers
Not issuing eTIMS invoices
VAT Auto-Populated Return differences
Not using lump sum sales correctly

6. Withholding Tax non-compliance

If you didn’t deduct WHT when required, you fail compliance.

7. You’re under KRA desk audit

Any ongoing review automatically pauses your TCC.

8. You didn’t declare income from side hustles or freelance work

If bank deposits or mobile money exceed declared income → red flag.

9. Your tax agent or accountant made filing errors

Incorrect filings by your agent still fall on you as the taxpayer.

10. CGT mismatch

KRA checks your PIN against:

Land registry records
Banks
Lawyers
eCitizen data

If a sale is detected → but CGT isn’t filed → TCC is blocked.

4. What To Do If Your TCC Is Rejected

Here’s how to fix the issue step-by-step:

✔️ Step 1 — Log into iTax → Check “Compliance Status”

This section shows:

Missing returns
Pending payments
Outstanding penalties

✔️ Step 2 — File all missing returns

File:

Income tax
VAT
PAYE
WHT
CGT

Even late filings are required.

✔️ Step 3 — Clear outstanding tax + penalties

Or request:

A payment plan
A penalty waiver (Section 89 TPA)

✔️ Step 4 — Fix eTIMS issues

Ensure:

All invoices are transmitted
Lump-sum sales declared
VAT claims are valid
Supplier mismatches resolved

✔️ Step 5 — Fix PAYE or WHT errors

Amend PAYE miscalculations and remit balances.

✔️ Step 6 — Reapply for TCC

Once all issues are resolved, approval typically takes 2–5 days.

5. Frequently Asked Questions (FAQ)

Q1: How long does TCC approval take?

Usually 2–5 working days.

Q2: Can I get a TCC with a payment plan?

Yes — if the plan is active and payments are up to date.

Q3: Does KRA reject TCC for personal M-PESA deposits?

If deposits suggest undeclared income, yes.

Q4: Do freelancers and influencers need TCC?

Yes — KRA treats side hustles as taxable income.

Q5: Can an agent apply for TCC on my behalf?

Yes, using iTax agent access.

6. Conclusion

Most TCC rejections come down to two simple things:
👉 Missing filings
👉 Unpaid taxes

But today, with KRA’s automation (eTIMS + VAT Auto-Populated Return + Bank/M-PESA analytics), inconsistencies are also big blockers.

If you want fast approval:

File everything
Pay everything
Fix everything

And if you need help:

📩 Contact Ushuru.com — get a full compliance check and TCC support within 24 hours.

Why You’re Not Getting Your KRA Tax Compliance Certificate (TCC) — 2025 Guide