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Doctors in Kenya raise concerns over electronic tax management system

Brian Murimi by Brian Murimi
January 17, 2024
in News
Reading Time: 2 mins read

The Kenya Medical Association (KMA) has raised concerns over new requirements for electronic invoicing under the recently enacted Finance Act of 2023.

In a meeting on Sunday with the Kenya Revenue Authority (KRA), KMA officials outlined worries that mandating e-invoicing from an Electronic Tax Invoice Management System (ETIMS) could negatively impact healthcare providers and patient privacy.

“That healthcare services are unique and involve several stakeholders, making integration within the system complex and administration tedious and impractical,” the KMA said in a statement.

The medical association warned that giving the KRA access to medical invoices could compromise patient confidentiality and data privacy. It also cautioned that invoice totals may not accurately reflect doctor and clinic earnings.

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KMA further noted that connecting to ETIMS could prove costly for small and medium healthcare facilities without robust IT infrastructure already in place.

In response, the KRA said ETIMS aims to standardize record-keeping for income tax purposes. Officials indicated they are open to developing alternatives specifically for the healthcare sector.

“They acknowledged the uniqueness of the different sectors and are open and willing to engage to come up with a system that considers the same and allows the KRA to fulfill its mandate,” the KMA statement said.

KRA also stressed that ETIMS complies with Kenya’s data protection act and does not require sensitive patient information beyond basic invoice details.

Following the talks, KMA and KRA agreed to form a working group with insurance companies to craft a modified framework for healthcare providers. The group will facilitate ongoing talks and provide regular progress updates to stakeholders.

“In conclusion, while KMA and KDA acknowledge the government’s efforts to modernize tax systems, we remain committed to safeguarding the interests of healthcare professionals and maintaining the highest standards of patient quality healthcare,” the medical body said.

KMA pledged to keep engaging with the revenue authority to ensure its members’ concerns are addressed throughout ETIMS implementation.

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Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

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