Creating an Invoice using ETIMS in Kenya – Simple Guide

Step-by-step guide on creating an invoice using ETIMS in Kenya by Quartet Consulting
Written By Maina Susan – Tax & Finance Writer
Author

Maina Susan is a Tax & Finance Writer at Quartet Solutions, simplifying tax regulations and financial concepts to help businesses stay compliant.

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Estimated read time: 4 minutes

Introduction

If you run a business in Kenya, generating invoices is part of your daily operations right?

 

But did you know that the Kenya Revenue Authority (KRA) now requires businesses in Kenya to issue electronic tax invoices via ETIMS?

 

Don’t worry – this guide by Quartet Consulting will walk you through the process of creating an invoice using ETIMS in Kenya, step by step.

 

Even if this is your first time, by the end of this article, you’ll be able to generate your invoices confidently.

 

Struggling to generate your first invoice using ETIMS in Kenya?

Quartet Consulting can guide your business step by step, making invoice creation fast, simple, and fully compliant with KRA regulations.

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What is ETIMS in Kenya?

ETIMS (Electronic Tax Invoice Management System) is an online system by KRA that allows you to generate, validate, and share electronic invoices instantly.

 

It is mandatory for all registered businesses to use this system to improve compliance, reduce fraud, and manage stock.

 

Gone are the days of manual invoicing or expensive hardware. ETIMS makes invoicing faster, easier, and fully compliant with Kenyan tax laws.

 

Who Needs to Register for ETIMS in Kenya?

If you earn business income in Kenya, ETIMS applies to you. This includes:

Type of Business / Person Notes for you
VAT-registered businesses
– You must use ETIMS for all your transactions.
Non-VAT businesses
– You still need ETIMS, even if you’re a small trader or previously exempt.
Service providers
– This includes consultants, lawyers, engineers, and agents.
Retailers and traders
– You as an SME or informal trader must register.
Rental income earners
– You must register if you earn monthly rental income (MRI).
Exempt businesses
– You still need ETIMS, even if you are a school, hospital, or NGO conducting business.

Bottom line: If you have a business in Kenya, you need ETIMS to stay compliant.

 

Note:

 

Planning to register for ETIMS in Kenya? Follow our step-by-step guide with screenshots on How to Register for ETIMS in Kenya.

 

What You Need to Know Before Creating an Invoice using ETIMS in Kenya

Before you start creating an invoice using ETIMS in Kenya, it is important to prepare a few key details to ensure accuracy and compliance.

Key Area What you Need to Know
1. VAT Considerations
  • Not all items are subject to VAT.
  • For example, if your business sells medicine, VAT is generally not applicable.
  • However, if you also sell products like skincare items, these are subject to VAT

Make sure you correctly indicate which items attract VAT when creating your invoice.

2. Accurate Category Selection
  • During ETIMS registration, you selected the category that reflects your business activity.
  • When generating an invoice, ensure that your items align with this category. 

This step ensures that your invoices remain compliant with KRA regulations.

3. Customer Information
  • Have your customer’s KRA PIN, mobile number, and payment details ready. 

Accurate customer information is essential for generating a valid invoice and avoiding delays in payment processing.

Not sure how to complete your ETIMS invoice correctly?

We help SMEs, NGOs, and service providers create invoices, ensure VAT and customer details are accurate, and stay fully compliant with KRA — hassle-free.

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Step-by-Step Guide: Creating an Invoice using ETIMS in Kenya

Here’s how you can generate your first invoice on ETIMS in Kenya:

 

Step 1: Log in to Your ETIMS Account

 

Visit the ETIMS Portal and log in using your registered credentials. 

 

Accessing your account is the first step in creating an invoice using ETIMS in Kenya.

 

Screenshot of logging in to create an invoice using ETIMS in Kenya.

Step 2: Navigate to “Sales Receipt”

 

Once logged in, locate the dashboard menu and click on “Sales Receipt.”

 

This is the section where all invoices are created and managed.It’s the last item on the “Transaction management” column.

 

Screenshot of ETIMS dashboard showing how to access “Sales Receipt” when creating an invoice using ETIMS in Kenya

Step 3: Set Invoice Details

  • Date: The system automatically sets the invoice date to today.
  • Type of Invoice: Select the type of invoice you want to create – Regular Invoice, Credit Note, or Debit Note
  • For most sales, choose Regular Invoice.

 

Click the “+” button at the top-right corner to begin creating your invoice.

 

Screenshot of setting invoice date and type when creating an invoice using ETIMS in Kenya.

Step 4: Input Buyer Details

 

Screenshot of entering customer KRA PIN and mobile number when creating an invoice using ETIMS in Kenya.

Enter the buyer’s information carefully:

  • KRA PIN of the customer
  • Mobile Number

 

Accurate customer details are crucial for validation and seamless payment processing.

Step 5: Choose Payment Type

 

Select the suitable mode of payment by the customer : MPESA, Cash, Bank, Cheque, or any other applicable method.

 

Step 6: Add Sale Items

 

For each item you are selling, provide the following details:

  • Item Name: e.g., Paracetamol, Moisturizer
  • Quantity: Number of units sold
  • VAT Applicable: Yes or No
  • Discounts: If any
  • Tax Type: General (16%), Zero-rate (0%), or Exempt
Screenshot of adding product name, quantity, VAT, and tax type when creating an invoice using ETIMS in Kenya.

If you are selling multiple items, click the “+” button to add more items. Ensure each item is correctly categorized for compliance with KRA requirements.

 

Step 7: Finish and Save Your  Invoice

 

Screenshot of reviewing and saving the invoice after entering all details when creating an invoice using ETIMS in Kenya

After entering all sale items:

  1. Click Finish at the bottom of the page.
  2. Review the invoice to ensure all details are correct.
  3. Click Save on the bottom-right corner.

 

Congratulations! You’ve successfully completed creating an invoice using ETIMS in Kenya. You can now share the invoice with your customer to facilitate payment.

 

FAQs About Creating an Invoice using ETIMS in Kenya

1. What are the fees for generating an invoice using ETIMS in Kenya?

  • Generating an invoice using ETIMS in Kenya is completely free for all registered businesses. 
  • There are no hidden costs, making ETIMS a cost-effective solution for both SMEs and larger enterprises.

 

2. Can I create an ETIMS invoice by myself?

  • Yes! ETIMS is designed to be user-friendly and intuitive, so you can generate your invoices without needing an accountant or technical expertise. 
  • Even first-time users can complete the process efficiently.

 

3. How do I register for ETIMS in Kenya?

  • To start creating invoices using ETIMS in Kenya, you must first register with the system
  • We have a step-by-step guide on “How to register for ETIMS in Kenya to help you set up your account quickly and correctly. 
  • Once registered, you’ll be ready to generate compliant electronic invoices.

 

4. What are the requirements for using ETIMS in Kenya?

 

Before you start creating an invoice using ETIMS in Kenya, make sure you have the following:

  • A valid KRA PIN
  • Mobile number and email address linked to your business
  • Accurate business category information as selected during registration
  • VAT registration, if your business is VAT-registered

 

5. Can I generate an ETIMS invoice even if I’m not registered for VAT?

  • Yes. ETIMS supports both VAT-registered and non-VAT businesses
  • You can create fully compliant electronic invoices regardless of your VAT status, making ETIMS suitable for a wide range of business types.

 

Conclusion

Creating an invoice using ETIMS in Kenya is straightforward, efficient, and essential for every business owner. 

 

By following the step-by-step process outlined in this guide, you can generate invoices that are fully compliant with KRA regulations, professional in appearance, and easy for your customers to pay. 

 

Whether you are a small trader, an SME, or a larger enterprise, mastering creating an invoice using ETIMS in Kenya ensures your business remains tax-compliant and organized.

 

Would you like us to assist you:

Creating an Invoice using ETIMS in Kenya

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Disclaimer

This guide is for informational purposes only

 

Quartet Consulting is not responsible for any errors or omissions, and you should always confirm ETIMS requirements directly with the Kenya Revenue Authority (KRA).

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