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eTIMS Compliance Guide for Kenyan SMEs (2026)

📅 14 May 2026 · ✅ Last verified: 12 October 2026 · 📖 6 min read · Tax & KRA
Black Kenyan merchant reconciling electronic invoices with a receipt printer, POS terminal, and laptop grid
Original editorial artwork; no official interface or endorsement depicted.

The Kenya Revenue Authority (KRA) introduced the Electronic Tax Invoice Management System (eTIMS) to digitize tax invoicing and curb tax evasion. For Kenyan SMEs, understanding eTIMS compliance is no longer optional — it's mandatory.

⚠️ eTIMS applies to persons carrying on business KRA requires persons carrying on business, including persons who are not registered for VAT, to generate and transmit electronic invoices. The exact penalty depends on the breach, taxpayer type and current law; confirm the applicable rule with KRA.
📱 New: Generate eTIMS Invoices via WhatsApp! KRA's Shuru chatbot can now generate eTIMS-compliant invoices with PDF download directly in WhatsApp. Save 0711 099 999, send "Hi", and select "eTIMS Invoice" from the menu. See our full WhatsApp filing guide.

1. What Is eTIMS?

eTIMS is KRA's system for real-time electronic tax invoice management. It requires businesses to generate, transmit, and store sales invoices electronically through KRA-approved systems. The system allows KRA to monitor sales transactions in near-real-time.

📌 New for 2026: KRA Validates Returns Against eTIMS Records From 1 January 2026, KRA automatically validates income and expenses declared in income tax returns against three data sources: TIMS/eTIMS invoices, withholding income tax gross amounts, and customs import records. Undocumented expenses may be reclassified as profit and taxed accordingly. To prepare, ensure supplier invoices are transmitted with your buyer PIN, reconcile books against eTIMS monthly, keep paper and digital records for at least 5 years, and register for eTIMS Lite if you are a small or micro trader. See KRA Public Notice 2323.

2. Who Needs to Comply?

Persons carrying on business who fall within the current KRA eTIMS scope in Kenya are required to use eTIMS for issuing invoices. This includes:

  • VAT-registered businesses
  • Businesses registered for income tax
  • Turnover taxpayers (formerly presumptive tax)
  • All businesses issuing ETR receipts

3. How to Register for eTIMS

  1. Log into your iTax account at itax.kra.go.ke
  2. Navigate to "eTIMS" under the Returns menu
  3. Select "Register for eTIMS"
  4. Choose your business type and fill in the required details
  5. Submit your application
  6. Choose an eTIMS solution that fits your business, then follow that solution’s onboarding steps

KRA describes multiple eTIMS solutions. Eligible taxpayers can self-onboard for applicable solutions; the steps depend on the solution selected. Confirm the current onboarding route in KRA’s guide.

4. Methods of Compliance

  • eTIMS Mobile App: Free app for small businesses. Generate invoices directly from your phone.
  • POS Integration: Connect your existing POS system to eTIMS via API. Requires a KRA-approved developer.
  • ERP Integration: For larger businesses with enterprise systems.

5. Penalties for Non-Compliance

  • Penalties depend on the specific electronic-tax offence, taxpayer type and applicable law; confirm the current rule with KRA.
  • Late-registration consequences depend on the obligation and applicable rules; no universal monthly figure is stated here.
  • Persistent non-compliance can trigger enforcement action; follow KRA's current notice.
  • Before renewing a licence, confirm with the relevant authority if your compliance status is under review.

6. Common Challenges

  • Technical issues: The mobile app can be slow or buggy. Keep physical records as backup.
  • Internet dependency: You need reliable internet. Consider the eTIMS offline mode for areas with poor connectivity.
  • Integration costs: POS integration may require a developer quote; treat any KES 20,000–100,000 figure as an illustrative planning range, not a KRA fee.

7. Best Practices

  • Issue invoices immediately for every sale — don't batch at end of day
  • Keep backup paper records for at least 5 years
  • Train your staff on the eTIMS mobile app
  • Reconcile eTIMS sales reports with your accounting records monthly
  • Contact KRA support early if you encounter technical issues

8. Frequently Asked Questions

What is eTIMS?

eTIMS is KRA's electronic tax invoice management system. It records and transmits sales invoices to KRA in near real time.

Who needs to comply with eTIMS?

Persons carrying on business, including persons who are not registered for VAT, must follow KRA's applicable eTIMS invoicing requirements. Confirm your obligation with KRA.

How do I register for eTIMS?

Choose the eTIMS solution that fits your business and follow its onboarding steps in KRA’s current guide. Eligible users can self-onboard for applicable solutions.

What penalties apply for non-compliance?

Penalties depend on the breach and the current rules. Confirm the applicable amount with KRA before relying on any figure.

Related Guides

⚠️ Disclaimer: This guide is for informational purposes. eTIMS requirements and penalties may change. Always verify current compliance requirements with KRA or a qualified tax professional.

Sources and update record

Updated 26 October 2026: Replaced outdated approval steps with onboarding guidance for the relevant KRA eTIMS solution.