💡 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.