What KRA eTIMS Means for Small Businesses in Kenya

If you run a business in Kenya, you’ve probably had a supplier or customer ask, “Can you give me an eTIMS invoice?” More and more, they won’t take no for an answer. Here’s why, and what you need to do.

KRA eTIMS (the Electronic Tax Invoice Management System) is how the Kenya Revenue Authority records sales invoices. It replaced the older TIMS in 2023, and it’s no longer just for big or VAT-registered companies.

Who has to use KRA eTIMS?

Every person carrying on business in Kenya is expected to onboard, including businesses that aren’t registered for VAT. That covers shops, restaurants, salons, consultants, freelancers and other service providers. If you sell something and you have a KRA PIN, assume eTIMS applies to you.

What changed in 2026

From 1 January 2026, KRA started validating the income and expenses people declare in their income tax returns, beginning with the 2025 income year. In plain terms: if you claim an expense, KRA expects to see a matching electronic invoice in its system, usually with your PIN on it. There are some exceptions in the law, so confirm the details for your business with a tax adviser.

That cuts both ways:

• When you sell to another business, they’ll want an eTIMS invoice so they can claim the cost. If you can’t give one, they may buy elsewhere.
• When you buy, ask every supplier for an eTIMS invoice with your PIN. Without it, you may lose the deduction and pay more tax.

Ways to issue eTIMS invoices

KRA offers a few options, depending on how many invoices you issue:

• eTIMS Lite: for small businesses, through the KRA web portal or a USSD/mobile option. Fine if you issue a handful of invoices a day.
• eTIMS client software: a free desktop application from KRA.
• System-to-system integration (OSCU/VSCU): for higher volumes. Your POS or accounting system sends invoices to KRA automatically.

Getting started, step by step

1. Log in to the KRA iTax portal with your PIN.
2. Register for eTIMS and pick the option that fits your size.
3. Issue an eTIMS invoice for every sale to a business customer, with their PIN.
4. Ask your suppliers for eTIMS invoices on every purchase you plan to claim.
5. Keep your invoices organised through the year, not in a panic in June.

KRA’s own guides and the latest notices are on the KRA website. Check there before relying on any deadline, including the ones in this article.

If you issue a lot of invoices

Typing every sale into a portal gets old fast. If you’re choosing a POS or accounting system, ask the provider directly: “Does it issue eTIMS-validated invoices?” A system that does it automatically saves hours each week and avoids year-end surprises. Our 7 questions to ask before buying a POS can help you compare.

This is general information, not tax advice. Rules and deadlines change, so confirm current requirements with KRA or a tax professional.