Kenya eTIMS Invoice Requirements: What Every Invoice Must Show (2026)

If you run any kind of business in Kenya - a shop, a consultancy, a side hustle, or a limited company - the Kenya Revenue Authority (KRA) now expects your invoices to go through its electronic Tax Invoice Management System, known as eTIMS. This is not only a VAT rule any more. Since 2024 it reaches almost every trader, and an expense your customer cannot back up with a valid eTIMS invoice can be thrown out at tax time. This guide covers what a compliant invoice must show, without the jargon.

What eTIMS actually is

eTIMS is KRA's system for capturing invoices electronically and reporting them to the tax authority in real time or near real time. Instead of a paper invoice you generate the invoice through KRA-approved software, and each invoice carries system-generated identifiers - a unique invoice number and a QR code - that let KRA and your customer confirm it is genuine. The point is a single trusted record of every sale, which KRA can match against tax returns.

Who must issue eTIMS invoices

Originally electronic tax invoicing was a VAT-registered-business requirement. That changed. KRA now requires all persons carrying on business - whether or not they are registered for VAT - to issue invoices through a KRA-prescribed system. In practice that pulls in non-VAT traders, freelancers, and professionals who previously wrote manual invoices. There are lighter-touch options for very small and informal businesses, but the default expectation is that business income is supported by an eTIMS invoice.

Mandatory fields on an eTIMS invoice

The Tax Procedures Regulations set out the data an electronic tax invoice must carry. In plain terms, a compliant invoice shows:

• The seller's KRA PIN and business name.
• The date and time the invoice was issued.
• A unique invoice serial or reference number.
• The buyer's KRA PIN - required when the buyer intends to claim the expense or input VAT (more on this below).
• A description of the goods or services, with the KRA item classification code where applicable.
• Quantity and unit of measure.
• Unit price and the taxable amount.
• The tax rate and the tax amount, shown separately.
• The total (gross) amount payable.
• System-generated identifiers - the unique invoice number and QR code produced by the eTIMS software.

When you must include the buyer's PIN

You do not always need the buyer's PIN. For an ordinary retail sale to a walk-in customer it can be left out. But the moment your customer wants to use the invoice to claim a business expense or reclaim input VAT, their KRA PIN must appear on the invoice. If you sell mostly to other businesses, ask for the PIN up front - reissuing invoices after the fact is a common headache. This is the same principle behind naming the correct buyer that applies almost everywhere; see our guide to what to include on an invoice.

Showing VAT: the 16% rate

Kenya's standard VAT rate is 16%. If you are VAT registered, your eTIMS invoice must show the taxable amount, the VAT rate, and the VAT amount as separate figures rather than a single tax-inclusive total. Some goods and services are zero-rated or exempt, in which case you show the appropriate rate. If you are not VAT registered you do not charge VAT, but you still issue the eTIMS invoice for the sale. For a broader view of how tax lines differ between countries, see invoice requirements by country.

Why this matters: penalties and disallowed expenses

There are two real costs to ignoring eTIMS. First, failing to issue a required electronic invoice can attract a penalty under the Tax Procedures Act of twice the tax due on the transaction. Second, and often more painful, expenses that are not supported by a valid eTIMS invoice can be disallowed as deductible business expenses under the Income Tax Act. That means your customers have a strong incentive to insist on a proper eTIMS invoice - and if you cannot provide one, they will buy from someone who can.

A note for freelancers and small traders

If you are a sole trader, consultant, or freelancer who used to send a simple invoice, the shift can feel like a lot. The practical steps are: register for a KRA PIN if you have not, onboard onto an eTIMS channel that suits your size (KRA offers options ranging from a full system to lightweight apps for small businesses), and make sure every invoice you issue carries the mandatory fields above. Keeping a clean PDF copy of each invoice for your own records is good practice on top of the eTIMS submission.