January 27, 2026
Maina Susan is a Tax & Finance Writer at Quartet Solutions, simplifying tax regulations and financial concepts to help businesses stay compliant.
LinkedIn >>Estimated read time: 3 minutes
Table of Contents:
eTIMS in Kenya is a mandatory digital invoicing system introduced by the Kenya Revenue Authority (KRA) that requires all businesses to issue electronic tax invoices.
If you run a business in Kenya — whether you are a consultant, shop owner, freelancer, landlord, or company director — you are required to use eTIMS.
In simple terms:
eTIMS is how KRA confirms that your sales and expenses are real and tax-compliant.
Many business owners hear about eTIMS through accountants, clients, or iTax alerts and feel confused or overwhelmed. That’s normal.
This beginner-friendly guide by Quartet Consulting explains what eTIMS is, why it is mandatory in Kenya, and how it works, using plain language and everyday examples.
You don’t need accounting knowledge to understand it.
Let’s dive right in!!
Quartet Consulting can simplify the process of eTIMS compliance for your business.
Book Your Free Consultation with Quartet Consulting TodayWhatsAppeTIMS means Electronic Tax Invoice Management System.
eTIMS (Electronic Tax Invoice Management System) is a KRA software solution in Kenya that allows businesses to:
eTIMS is mandatory for all business entities – including non-VAT registered, informal, and sole proprietors
In simple terms:
An eTIMS invoice is a digital invoice that is recognised by KRA as valid.
When you issue an invoice through eTIMS, the invoice details are automatically shared with KRA. You don’t need to email, upload, or report anything manually.
Simple Example:
You run a salon in Thika. A client pays you KES 5,000.
That’s the difference.
Yes. eTIMS in Kenya is mandatory for all businesses.
This applies whether:
From 1st September 2023, and fully enforced from 1st January 2024, KRA made eTIMS compulsory.
The One Rule You Must Remember
If an expense does not have an eTIMS invoice, KRA can reject it.
That means you may end up paying more tax, even if the expense was genuine.
Example
During an audit, KRA can say:
“This expense is not supported by eTIMS.”
Result?
“The expense cost is disallowed. Your tax goes up.”
Common Myth
“eTIMS is only for VAT‑registered businesses.”
This is no longer true.
Not using eTIMS in Kenya can quietly hurt your business. Here’s a simple table explaining the challenges and what they mean for you:
You may face:
| Challenge | What It Means / Why It Matters |
|---|---|
|
Disallowed expenses
|
– If you make business purchases without an eTIMS invoice, KRA may reject them during an audit, increasing your taxable income.
|
|
Higher income taxs
|
– Rejected expenses mean you pay more tax than necessary, even if the costs were legitimate.
|
|
Penalties and interest |
– Non-compliance can attract fines and interest charges from KRA, adding unnecessary costs to your business.
|
|
Problems getting a Tax Compliance Certificate (TCC)
|
– Without eTIMS compliance, you may struggle to obtain or renew your TCC, which many clients and government agencies require.
|
|
Clients refusing to pay |
– Many businesses now demand eTIMS invoices for payments. – Not issuing them can delay or block client payments. |
|
Limited business opportunities |
– Suppliers and partners may avoid working with businesses that aren’t eTIMS-compliant, affecting growth and credibility.
|
Many businesses now won’t work with suppliers who are not eTIMS‑compliant.
Understanding eTIMS in Kenya is easier than it sounds. Here’s what actually happens, step by step:
Step 1: Register for eTIMS
Step 2: Choose your invoicing method
Step 3: Issue invoices through eTIMS
Step 4: KRA automatically receives the invoice details
Step 5: Keep your records for tax filing
No tech skills required
Even if you’re not tech-savvy, eTIMS is straightforward — designed to make compliance simple for all businesses in Kenya.
KRA gives you different ways to use eTIMS, depending on your business.
| eTIMS Option | What It Is / How It Works | Best For / Why Use It |
|---|---|---|
|
Online Portal |
Log in to KRA’s portal and issue invoices online.
|
– Most SMEs, consultants, service providers, and small shops. Simple, no software installation required.
|
|
eTIMS Software
|
Install software on your computer to issue invoices.
|
– Businesses issuing many invoices daily; suitable for high-volume operations.
|
|
System Integration
|
Connect your accounting or ERP system directly with eTIMS.
|
– Large businesses with existing accounting systems; everything runs automatically.
|
|
Mobile App (eTIMS Lite) |
This can be accessed through the short code *222#
This option Issue invoices directly from your smartphone. |
– Traders, small service providers, or businesses on the go. Quick and convenient.
|
We guide SMEs through the online portal, software, mobile app, and system integration — making compliance easy, fast, and hassle-free.
Book Your Free Consultation with Quartet Consulting TodayWhatsAppYou still must register for eTIMS in Kenya.
Even small businesses must register for eTIMS in Kenya to stay tax-compliant.
However, if you buy from very small suppliers who don’t issue eTIMS invoices,:
Some business costs are excluded, such as:
Today, you cannot ignore eTIMS in Kenya and still be tax‑compliant.
To qualify for a Tax Compliance Certificate in Kenya, you must:
This requirement affects companies, partnerships, and individuals with business income.
1. What is an eTIMS invoice in Kenya?
An eTIMS invoice in Kenya is an electronic tax invoice generated through the Electronic Tax Invoice Management System (eTIMS) approved by the Kenya Revenue Authority (KRA).
It allows KRA to verify sales and expenses in real time and confirms that an invoice is genuine and tax-compliant.
2. Is eTIMS mandatory in Kenya?
Yes. eTIMS in Kenya is mandatory for all businesses, whether VAT registered or not.
Since 1st September 2023, fully enforced from 1st January 2024, KRA requires every person doing business in Kenya to issue invoices through eTIMS.
3. Who is exempted from eTIMS in Kenya?
No business is fully exempt from eTIMS in Kenya.
Small businesses, freelancers, landlords, consultants, and informal traders must all register and use eTIMS.
Some types of expenses, such as salaries, imports, and bank charges, do not require eTIMS invoices.
4. Is eTIMS free in Kenya?
Yes. eTIMS in Kenya is free to use. The Kenya Revenue Authority (KRA) provides free options including the eTIMS online portal and the eTIMS mobile app (eTIMS Lite).
Some third-party systems may charge for convenience or additional features, but there is no mandatory cost from KRA.
5. Do I need eTIMS if I don’t charge VAT in Kenya?
Yes. All businesses in Kenya must use eTIMS, regardless of VAT registration.
VAT status no longer determines eTIMS compliance.
Whether you are a small business, freelancer, or landlord, you must issue invoices through eTIMS to remain tax-compliant.
6. What happens if my supplier doesn’t issue an eTIMS invoice in Kenya?
If your supplier doesn’t provide an eTIMS invoice, your expense may be rejected by KRA during a tax audit.
To prevent this, you may use buyer-initiated invoicing if applicable, which allows you to generate a valid eTIMS invoice for the purchase, keeping the expense tax-deductible.
7. Can I get help onboarding to eTIMS in Kenya?
Yes. You can appoint a KRA-approved tax or advisory firm like Quartet Consulting to help with eTIMS registration and setup.
They can guide you on system selection, invoice generation, and ongoing compliance, ensuring your business meets all KRA requirements.
No matter where you operate — a boutique in Nakuru, a consulting firm in Westlands, or a shop in Eldoret — eTIMS in Kenya is no longer optional.
Compliance isn’t just a legal requirement; it protects your business, ensures your expenses are valid, and keeps your tax affairs smooth.
The sooner you embrace eTIMS, the safer and more efficient your business will be. Think of it as a small step that prevents big headaches later.
Click the WhatsApp button to book your free consultation with Quartet Consulting now
Or call us at 0737 570 370
WhatsAppAt Quartet Consulting, we help Kenyan SMEs understand eTIMS in Kenya without stress or confusion.
We can help you with:
If eTIMS feels overwhelming, you don’t have to navigate it alone.
Partner with Quartet Consulting to get clear guidance, stress-free compliance, and confidence in your business.
Book your free consultation today and take the first step toward worry-free eTIMS compliance!
Your Trusted Tax Consultant in Nairobi for SMEs & NGOs
