eTIMS in Kenya: what every business owner must do in 2026
A plain-language guide to who needs eTIMS, which option to choose, and why your expenses and income now depend on it.
What eTIMS is
eTIMS is KRA's electronic Tax Invoice Management System. Instead of a paper or Word invoice, your sales invoice is generated through an approved system and sent to KRA, which returns a control code. It is separate from iTax: iTax is where you register, file returns and pay, while eTIMS records invoices as sales happen. Most businesses use both.
Who must use it
KRA's position is that all persons carrying on business in Kenya must onboard to eTIMS and issue electronic tax invoices, whether or not they are VAT-registered, with limited exemptions. Companies, partnerships and sole proprietors all fall inside this. If you are unsure whether an exemption applies to you, check on the KRA website or ask us.
Why it matters more from 2026
- From 1 January 2026, KRA began matching the income and expenses in tax returns against eTIMS data, withholding tax records and customs information.
- KRA has said that from the 2026 year of income, declared income and expenses must be supported by valid electronic tax invoices through eTIMS or TIMS.
- For the 2025 year of income only, KRA allowed valid expenses without eTIMS invoices to be declared, subject to validation. This was a one-time concession.
- Expenses without a valid eTIMS invoice risk being disallowed, which raises your taxable profit. Input VAT on non-compliant supplier invoices can also be refused.
In plain terms: a purchase without an eTIMS invoice may not count as a business expense. A sale without one can put you out of line with what your customers report to KRA.
Which eTIMS option fits you
| Option | Best for |
|---|---|
| eTIMS Lite (web or app) | Small and micro businesses with low invoice volumes |
| eTIMS Lite (USSD) | Traders without a smartphone or reliable internet |
| eTIMS Online portal | Businesses issuing a small number of invoices a month |
| Integrated system (VSCU or OSCU) | Businesses with accounting, ERP or POS software that sends invoices to KRA automatically |
If you issue invoices every day, an integrated system saves hours of retyping and mistakes. Zoho Books, for example, is an approved integrator, so invoices go to KRA straight from your books.
Your eTIMS checklist
- Onboard. Register for eTIMS with your KRA PIN and choose the route that fits your volume.
- Set up items and tax rates. Wrong tax classes are the most common cause of rejected invoices.
- Test before going live. Send a few sample invoices and credit notes.
- Ask suppliers for eTIMS invoices. Make it a rule: no eTIMS invoice, no payment, unless the supplier is exempt.
- Watch the awkward cases. Rent paid to landlords, small suppliers and government fees are where invoices are most often missing.
- Reconcile monthly. Match your eTIMS sales and purchases to your books before you file, so differences show up early.
- Keep the records. Keep invoices issued and received for at least five years.
Common mistakes
- Thinking eTIMS only matters for VAT-registered businesses.
- Issuing a normal invoice and a separate eTIMS invoice for the same sale.
- Cancelling a sale in your books without issuing a credit note in eTIMS.
- Waiting until the return is due to discover missing supplier invoices.
Estimate your exposure with the eTIMS expense risk calculator, see how invoices tie into VAT registration and withholding tax, and read about our eTIMS set-up service.
Requirements and exemptions change. Confirm on kra.go.ke or with a qualified professional before acting.
Calculators and guides to read next
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