KRA eTIMS and electronic invoicing in Kenya
How the Kenya Revenue Authority runs the electronic Tax Invoice Management System and which solution type fits your business.
The Kenya Revenue Authority (KRA) runs the electronic Tax Invoice Management System (eTIMS). Under the Finance Act 2023, persons carrying on business in Kenya are required to generate invoices through eTIMS, and expenses not supported by an eTIMS invoice are not deductible for income tax, except where the law exempts them. KRA offers several solution types, from a web portal to system-to-system integration. Check the current position on kra.go.ke before you rely on any date or penalty. 4invoices is not an eTIMS solution: it prepares invoices and PDFs, it does not sign them with KRA.
- eTIMS is the KRA system for electronic tax invoices.
- Finance Act 2023: expenses without an eTIMS invoice are generally not deductible.
- KRA solution types include the Online Portal, eTIMS Client, eTIMS Lite, VSCU and OSCU.
- 4invoices does not connect to KRA and does not issue eTIMS-signed invoices.
How it works
Get a KRA PIN through iTax. The PIN is required before you can register on eTIMS.
Pick an eTIMS solution on the KRA website. KRA describes the Online Portal for service businesses, the eTIMS Client for goods, eTIMS Lite for very small businesses, and VSCU and OSCU for system-to-system integration.
Register on etims.kra.go.ke and follow the KRA onboarding steps for the solution you chose.
Issue tax invoices through your chosen KRA solution. The signed invoice is the legally relevant document.
Use 4invoices, if you wish, to prepare a clean invoice draft with a VAT rate per line and download a PDF. It does not replace the eTIMS invoice.
Legal framework
- Finance Act 2023 (eTIMS invoicing and expense deductibility).
- Tax Procedures Act 2015.
- Kenya Revenue Authority eTIMS guidance (kra.go.ke).
Frequently asked questions
Is eTIMS mandatory in Kenya?
Under the Finance Act 2023, persons carrying on business in Kenya must generate invoices through eTIMS, and KRA has stated that from 1 January 2024 only eTIMS-compliant invoices are recognised for income tax deductions. VAT-registered taxpayers must register on eTIMS. Confirm your own obligations on kra.go.ke.
What is the difference between TIMS and eTIMS?
TIMS relied on a physical Electronic Tax Register device. eTIMS is KRA's newer system with software-based options such as a web portal, an app and integration units (VSCU and OSCU), so a physical register is not the only route.
Which eTIMS solution suits an online business?
KRA describes OSCU as suited to businesses that operate fully online and VSCU to businesses that are not entirely online, and both are for system-to-system integration. Read the KRA page on types of eTIMS solutions before you decide.
Do credit notes need eTIMS?
Adjustments to a signed invoice should go through eTIMS as well. Ask KRA or your tax adviser how to reference the original invoice in your solution.
Does 4invoices issue eTIMS invoices?
No. 4invoices does not connect to KRA, does not sign or transmit invoices and does not verify PINs. It lets you create invoices with a VAT rate per line, use any currency with an exchange rate and download a PDF. There is a 6-month free trial without a card.