How Can Accountants in Kenya Use AI Safely?

TL;DR:

• AI is useful for building formulas, explaining variances, drafting client queries, and summarising public tax notices. It should not produce a figure you have not checked.
• Client data does not belong in a free consumer AI tool. You can often get the help you need by sending the shape of the data (column headings and made-up rows) and keeping the real numbers in your own workbook.
• From 2026 reconciliation carries more weight. KRA now validates income tax returns against eTIMS, withholding and customs data, and its one-year concession for expenses without eTIMS invoices covered 2025 returns only.
• We did not find a dedicated ICPAK standard on AI as of 9 November 2026. The IESBA Code, which ICPAK applies, already covers technology, confidentiality and competence.
• Microsoft tells users to avoid Copilot for decisions in sensitive areas such as finance. Use it to build and explain, then check. The old =COPILOT() Excel function stopped working on 14 September 2026.

Who this guide is for

This guide is for accountants in practice, finance teams in companies and NGOs, tax consultants, and bookkeepers in Kenya. You need basic Excel and no AI background.

It is written for the people who sign the work and answer for it. It is general guidance. It is not tax advice, and tax rules change: confirm anything that matters against KRA's current notices.

What should accountants use AI for?

Use AI where you can check the result against something you already hold. Keep it away from anything that replaces your judgement or requires it to see client records in an unapproved tool.

Is client data safe in AI tools?

Treat client data in a free consumer AI tool as unsafe. Those tools are built for the public, their settings can change, and you have no client-grade contract with the provider.

As of 9 November 2026, the providers' own pages show why:

• Gemini: Google says some chats may be reviewed by humans, and warns users not to enter confidential information they would not want a reviewer to see.
• ChatGPT: Engadget reported in August 2026 that free accounts are enrolled in model training by default, with an opt-out under Settings, then Data Controls.
• Microsoft Copilot (consumer): Microsoft's privacy page, written for its older app, says "You shouldn't provide any confidential or sensitive personal data that you would not want Microsoft to use" for the purposes it describes.
• Claude: Anthropic says consumer chats may be used for training when you choose to allow it, and that you can change this in privacy settings.

Settings help. They do not make a personal account suitable for a client's payroll.

At least one large firm in Kenya has said this publicly. In August 2025 Business Daily reported that Grant Thornton Kenya's CEO, Dipesh Shah, said firms cannot upload client data to ChatGPT to generate reports, and that the firm was looking at secure, in-house databases to support AI tools. The article notes that breaching confidentiality can lead to fines or suspension of a practising certificate.

Payroll and client files also contain personal data, so the Data Protection Act applies. Section 25 says personal data should not be transferred outside Kenya without proof of adequate safeguards or the person's consent. Many AI tools are run from abroad. In August 2026 Business Daily also reported an ODPC draft guidance note saying firms would need written agreements with offshore AI vendors. That note was a draft when reported.

What to do instead

Some firms may want to run a model on their own machine. Our guide on running open-source AI models locally explains the hardware and the limits. Write your decisions into a short policy. Our guide to an AI usage policy for Kenyan organisations shows what it should cover.

What has ICPAK said about AI?

As of 9 November 2026, we did not find a dedicated ICPAK standard, policy or guideline on AI on the ICPAK pages we checked. The institute may have issued something we missed, so ask its technical team before you rely on this.

Here is what we did confirm:

• ICPAK ran a webinar on 11 August 2026 called "How to use AI effectively for competitive edge", worth 2 CPD units. Its description says "Human judgment, skepticism, confidentiality, and data privacy remain essential."
• ICPAK first adopted the 2009 IESBA Code of Ethics as its own and has kept updating it, according to its profile with the International Federation of Accountants (IFAC), last updated in April 2026.
• From 1 July 2025 ICPAK has required members to read the latest IESBA Code and pass an ethics test to qualify for a certificate of good standing.

The IESBA Code matters here. Its technology-related revisions took effect on 15 December 2024. IESBA says they apply to "the use of any technology", including future technologies where possible, and add guidance on confidentiality and on professional competence and due care.

ACCA members have a similar message. At ACCA's African Members Convention in Mombasa in 2025, reported by The Star, ACCA said it had built AI and ethics training into its qualification.

In practice, this means your ordinary professional duties already cover AI. If you would not hand a client's file to a stranger, do not hand it to a chatbot.

Why eTIMS makes reconciliation the main job of 2026

KRA now checks what you declare against its own data, so errors that once sat quietly in a schedule can now stop or change a return. This is the part of the guide worth reading twice.

KRA's document describes how the checks work. Declared gross turnover is compared with the higher of TIMS/eTIMS sales or gross amounts in withholding tax credits. Claimed expenses are checked against invoices transmitted under the taxpayer's PIN. KPMG's tax alert explains the likely outcome: KRA will generally rely on the higher of declared income and its data, and the lower of declared expenses and its data.

Some items are outside the eTIMS check. KRA lists emoluments, imports, investment allowances including internal accounting adjustments, airline passenger ticketing, interest, fees charged by financial institutions, expenses subject to final withholding tax, and services from non-residents without a permanent establishment in Kenya. KRA says these should be claimed in the specific fields provided.

Two points will catch clients out. The concession for expenses without eTIMS invoices is over. And the April deadline is new, so anyone used to 30 June could miss it.

Worked example: an eTIMS expense reconciliation without sharing client data

Here you get AI's help with the logic and keep the client's data out of it. The trick is to send the shape of the data, using only column headings.

Suppose your workbook has two sheets.

• Schedule: A Supplier PIN, B Invoice number, C Amount, D Exempt category (blank if none).
• eTIMS: A Supplier PIN, B Invoice number, C Amount.

Prompt 1: send the headings only

I use Microsoft Excel. I have two sheets. Sheet "Schedule" has columns A Supplier PIN, B Invoice number, C Amount, D Exempt category (blank if none). Sheet "eTIMS" has columns A Supplier PIN, B Invoice number, C Amount. I need a formula for E2 on Schedule that returns: "Exempt" if D2 is not blank; "No eTIMS invoice" if there is no row in eTIMS with the same PIN and invoice number; "Matched" if the amounts agree within KES 1; otherwise "Amount differs". Give the formula, explain each part in one sentence, and list three ways it could give a wrong answer. Do not assume anything about my data that I have not said.

You should get something like this:

=IF(D2<>"","Exempt",IF(COUNTIFS(eTIMS!$A:$A,A2,eTIMS!$B:$B,B2)=0,"No eTIMS invoice",IF(ABS(SUMIFS(eTIMS!$C:$C,eTIMS!$A:$A,A2,eTIMS!$B:$B,B2)-C2)<=1,"Matched","Amount differs")))

Paste it into E2 and fill down. Here is what the result might look like, using made-up figures.

Of the KES 250,750 claimed, KES 64,400 is at risk: the KES 46,400 with no invoice, plus the KES 18,000 gap on Supplier 4. Your next step is a list of supplier follow-ups, and only a person can decide what happens to each one.

Where this method can fail

• Invoice numbers typed differently ("INV-118" and "INV118") will show as missing. Clean both columns first.
• One side may include VAT and the other exclude it. Decide this before you compare.
• A credit note can make an eTIMS figure look wrong. On the sales side, KRA says it uses net sales after credit notes.
• Accruals and prepayments create timing differences. KRA has acknowledged this and indicated a separate sheet for such adjustments.
• Whole-column references can be slow on very large files. Limit the range if Excel struggles.

Test the formula on five rows you have worked out by hand. Then total each result category and confirm the totals add back to your schedule. That last check catches most mistakes.

How to use Excel and Copilot in 2026

Copilot in Excel can help, provided you know what your licence gives you and treat every change as unreviewed work. Microsoft's guidance as of 9 November 2026 includes these points:

• Copilot in Excel needs an eligible plan: Microsoft 365 Personal or Family with an AI credits plan, Microsoft 365 Premium, a commercial Copilot subscription, or a Copilot Chat-eligible business subscription. Your administrator controls access for work accounts.
• Editing with Copilot only works when Calculation Options are set to Automatic.
• Saved Copilot changes are visible to anyone with access to the file, including co-authors. You can undo them or view earlier versions.
• Microsoft says Copilot "can sometimes make mistakes" and tells users to review everything it creates. Its FAQ also says: "Avoid using Copilot for decisions in sensitive areas such as finance, legal, or medical topics."
• The free consumer Copilot at copilot.cloud.microsoft is a chat tool. Microsoft's comparison does not list it as working inside Excel.

Older tutorials still teach the =COPILOT() worksheet function. Microsoft retired it on 14 September 2026. Results already calculated stay as stored values, but a cell that recalculates returns #NAME?. If a client workbook used it, find those cells before year-end. Microsoft points users to the Copilot pane instead.

Here is a good instruction for editing a working copy:

Prompt 2: a safe edit

Work only on the sheet named "Schedule". Add a new column E called "Check" using this rule: [describe]. Do not change, delete, sort or reformat any existing column. Do not overwrite any formula. Tell me which cells you changed. List any rows where the data looks inconsistent, but do not fix them.

Work on a copy. Keep the original file untouched until a reviewer has signed off. For a full programme for your team, see our guide to Microsoft Copilot training for teams in Kenya.

Prompts for tax season

Replace the square brackets. Keep client names and figures out.

Prompt 3: a client document request

Draft a WhatsApp message and a short email from an accounting firm to a small-business client. Purpose: ask for documents for the 2026 income tax return. List: bank statements, M-PESA statements, sales invoices, purchase invoices with the supplier's PIN, and a list of any expenses paid without an electronic tax invoice. Explain in one plain sentence why KRA now compares expenses with eTIMS records. Friendly tone, no jargon, a clear deadline of [date], under 120 words for WhatsApp.

Prompt 4: explain eTIMS to a client

Explain to a shop owner with no accounting background why they should give their KRA PIN whenever they buy stock, and ask the supplier for an electronic tax invoice. Use one everyday example in Kenya. Under 100 words. Do not state any tax rate or penalty.

Prompt 5: summarise a public notice

I will paste a public notice from the Kenya Revenue Authority. Summarise it for accountants in a small firm. Give: what changed, who it affects, the effective date, and what we must do. Quote the exact words for any date. Write "not stated in the notice" where it is silent. Do not add information from outside the notice. Notice: [paste]

Prompt 6: a variance explanation

Rewrite my rough notes as two sentences for a management report. The reader is a board member with no finance training. Do not add reasons that are not in my notes. Notes: staff costs up 12% against budget, two hires brought forward from Q1, recruitment fee one-off. No further increase expected.

The instruction not to add reasons is important. AI tools like to supply tidy explanations, and a neat, invented cause in a board paper is a serious error.

What goes wrong

A large firm has already shown what can happen. In October 2025, Deloitte Australia agreed to refund the final payment on an AU$440,000 government report after a university researcher found fabricated references and an invented court quotation. A corrected version disclosed the use of generative AI. The department said the report's substance and recommendations were unchanged. The errors and the refund still became international news.

These are the mistakes to watch for in day-to-day work:

A review checklist before anything leaves the office

• Have I checked every figure against the ledger, the eTIMS data or the source document?
• Have I opened every Act, notice or standard cited?
• Is each rule current as of today's date?
• Do the totals add back to the original?
• Did any client data go into an unapproved tool?
• Does the wording match what I can defend to the client, KRA or ICPAK?
• Has a named person reviewed and signed off this work?

A 30-day start for a small practice

Week 1. Write a one-page policy. Decide which tools and accounts are approved. Time one repeated task as it stands, for example chasing client documents.

Week 2. Build a small prompt library using the prompts above. Build the eTIMS reconciliation template and test it on a past file with known answers.

Week 3. Use the template on one live client. Have a second person review it. Log each error found.

Week 4. Compare time spent, including checking. Decide what to keep. Set a date to re-check Microsoft's plans and KRA's latest notices, because both will change.

Questions people ask

Can accountants in Kenya use ChatGPT at work?

There is no Kenyan rule we found that bans it. Client information must stay confidential, though, and personal data is protected by law, so client records should stay out of a personal free account. Use it for public material, templates and formula logic.

Does ICPAK allow AI?

We did not find an ICPAK document that bans or formally regulates AI as of 9 November 2026. ICPAK's webinar on the topic stressed judgement, scepticism, confidentiality and privacy. The IESBA Code, as applied by ICPAK, already covers technology.

Will AI replace accountants in Kenya?

AI will take over parts of the work, such as first drafts and matching. Someone still has to answer to the client and to KRA, and to decide what to do about the exceptions. Accountants who can check AI's work will be useful for a long time.

Can AI reconcile eTIMS invoices for me?

It can write and explain the matching logic very well. For the matching itself, use Excel, your accounting system, or an approved work tool. A person must review the exceptions.

Do I still need eTIMS invoices if my expense is genuine?

KRA's notice of 8 June 2026 says the allowance for expenses without eTIMS/TIMS invoices covered 2025 returns only, and that from the 2026 year of income declared expenses must be supported by valid electronic invoices. Check the listed exemptions, and ask your tax adviser about particular cases.

Does the free version of Copilot work in Excel?

Microsoft's comparison lists Copilot in the desktop apps under eligible Microsoft 365 plans, and does not list the free consumer Copilot as working inside Excel. Business users should ask their administrator, because access depends on how the account is set up.

When are individual tax returns due now?

KRA's Finance Act 2026 page says that from 1 January 2027 individuals file by the last day of the fourth month after the year of income, which is 30 April. Companies still have six months from the end of their accounting period. Confirm your own dates on iTax.

Sources

All sources were last checked on 9 November 2026.

• Kenya Revenue Authority, iTax Enhancements, December 2025 and January 2026
• Kenya Revenue Authority, public notice: Filing of 2025 Income Tax Returns (8 June 2026)
• Kenya Revenue Authority, Finance Act 2026: what it means for you
• Kenya Revenue Authority, PAYE
• Kenya Revenue Authority, Value Added Tax
• KPMG Kenya, Tax Alert: eTIMS and the Shift to Data-Driven Income and Expense Validation
• EY Global Tax News, Kenya Revenue Authority to validate income and expenses in income tax returns (11 December 2025)
• ICPAK, webinar: How to use AI effectively for competitive edge (11 August 2026)
• ICPAK, notice on the IESBA Code and the Professional Ethics Test
• ICPAK, seminar materials
• IFAC, member profile: Institute of Certified Public Accountants of Kenya
• IESBA, Technology-related Revisions to the Code
• Business Daily, "Why accounting firms are steering clear of AI integration in Kenya" (11 August 2025)
• The Star, "AI poses ethics, skills hurdle to accountancy" (5 December 2025)
• Business Daily, "Regulator now plans tighter data shields on offshore AI platforms" (4 August 2026)
• Data Protection Act, Cap. 411C, Kenya Law
• Microsoft Support, Frequently asked questions about Copilot in Excel
• Microsoft Support, Frequently asked questions about editing with Copilot in Excel
• Microsoft Support, COPILOT function
• Microsoft Support, difference between Microsoft Copilot (free) and Copilot in Microsoft 365
• Microsoft Support, Privacy FAQ for Microsoft Copilot
• Google, Gemini Apps Privacy Hub
• Anthropic, Is my data used for model training?
• Engadget, "ChatGPT: What's free in 2026 and what isn't?" (12 August 2026)
• The Register, "Deloitte refunds Aussie gov after AI fabrications slip into $440K welfare report" (6 October 2025)

Where FuKazee fits in

FuKazee trains finance teams to use AI on the work in front of them. We assume nobody in the room knows AI yet and we avoid jargon. We show the free version of every feature, and we spend real time on Microsoft 365, Copilot and Excel, because that is where accountants work. Since 2022 we have trained more than 3,000 people. Nobody becomes an expert in a few days, so we focus on habits a team can keep.

Sessions are built around your own tasks, using invented or anonymised data: reconciliations, client queries, management commentary and review checks. Training cannot replace your tax adviser or fix missing supplier invoices. Read more about AI training for accountants in Kenya. We train in Nairobi, on-site by arrangement, or live online.

To talk about training for your finance team, email us at lead@fukazee.com