KRA eTIMS and electronic invoicing in Kenya
How the Kenya Revenue Authority runs the electronic Tax Invoice Management System and which client type fits your business.
The Kenya Revenue Authority (KRA) introduced the electronic Tax Invoice Management System (eTIMS) in 2023, replacing the older hardware-based TIMS regime. Under the Finance Act 2023 and the Tax Procedures (Electronic Tax Invoice) Regulations 2024, eTIMS is mandatory for all VAT-registered businesses and for any taxpayer — including non-VAT-registered persons — earning gross turnover above KES 5 million per year. KRA exposes four client types (Online Portal, eTIMS Lite, VSCU and OSCU) so that businesses from a single trader on a phone to an ERP-driven distributor can issue compliant electronic tax invoices.
- eTIMS: web, mobile and API gateway run by KRA since 2023.
- Mandatory: all VAT-registered taxpayers plus non-VAT turnover above KES 5M.
- Client types: Online Portal, eTIMS Lite, VSCU (Virtual SCU), OSCU (Online SCU).
- Penalty: KES 10,000 or twice the tax due per non-compliant invoice (TPA s.86).
How it works
Register for a KRA PIN through iTax (or eCitizen). The PIN is mandatory before you can enroll in eTIMS — it identifies the taxpayer on every tax invoice. Sole proprietors use a personal PIN; companies use the corporate PIN issued at incorporation.
Choose the right eTIMS client type. Online Portal suits service businesses that issue a handful of invoices per month via the KRA web UI. eTIMS Lite (Android/USSD) targets micro-enterprises and farmers. VSCU is a software-only signing module for ERPs. OSCU is the online-only variant for systems with permanent connectivity — recommended for SaaS invoicing tools.
Onboard through etims.kra.go.ke. Provide PIN, business details, declared client type and (for VSCU/OSCU) sign the integration request. KRA approves typically within 1–3 working days and issues credentials for the eTIMS sandbox before production go-live.
Sign every B2B and B2C invoice through the chosen client. The signed invoice carries a unique CU Invoice Number, a QR code, a control unit serial and the digital signature. Buyers can verify any invoice on the public KRA verification page using the QR code or invoice number.
File the monthly VAT3 return on iTax by the 20th of the following month. Because eTIMS streams sales data to KRA in near real time, return preparation is largely a reconciliation exercise — input VAT claimed must come from eTIMS-signed invoices issued by registered suppliers.
Legal framework
- Finance Act 2023 (eTIMS mandate expansion to non-VAT taxpayers).
- Tax Procedures Act 2015, sections 23, 23A and 86.
- Tax Procedures (Electronic Tax Invoice) Regulations 2024.
- KRA Public Notice on eTIMS go-live timelines (2023–2024).
Frequently asked questions
Is eTIMS mandatory for every business in Kenya?
Yes, for VAT-registered taxpayers since 2023 and for all other businesses with gross turnover above KES 5 million per year under the Finance Act 2023. Taxpayers below the KES 5M threshold are still encouraged to onboard so that their expense invoices remain deductible for any customer who needs to claim them. From January 2024 KRA also requires expense invoices to be eTIMS-compliant for the cost to be deductible against income tax.
What is the difference between TIMS and eTIMS?
TIMS (introduced in 2020) required taxpayers to buy a physical Electronic Tax Register (ETR) device from a KRA-approved vendor — costly and limited to retail counters. eTIMS, launched in 2023, virtualises the control unit (VSCU/OSCU) and adds a free web portal and an Android app. Hardware ETRs already in use continue to work but are no longer mandatory, and most new taxpayers go straight to eTIMS.
Which eTIMS client should an online SaaS or e-commerce vendor pick?
OSCU (Online Sales Control Unit). It is designed for systems with permanent internet connectivity that need to sign invoices through an API. KRA exposes REST endpoints for invoice signing, credit notes, stock movement and configuration. VSCU is the offline-capable variant that buffers invoices locally — useful for retail with intermittent connectivity. 4invoices integrates OSCU natively for Kenyan tenants.
What happens to invoices issued before eTIMS adoption?
Invoices issued before the taxpayer's eTIMS go-live date remain valid based on the rules in force when they were issued. From the eTIMS effective date, however, any tax invoice not signed through an approved client is non-compliant: the customer cannot claim input VAT, the supplier cannot deduct the cost for income tax, and KRA can assess a penalty of KES 10,000 or twice the tax due per invoice.
Do credit notes and proforma invoices need eTIMS?
Credit notes — yes. Every credit note that reverses or adjusts a previously signed invoice must reference the original CU Invoice Number and be signed through eTIMS. Proforma invoices — no. A proforma is not a tax invoice and is not signed by eTIMS; it must be converted to a final eTIMS invoice once the supply happens. 4invoices automates the proforma-to-final conversion so the CU Invoice Number lands on the right document.