eTIMS (Electronic Tax Invoice Management System) is KRA's digital invoicing system that tracks all business transactions in real time. Think of it as KRA's way of connecting every sale and purchase in Kenya so that tax reporting becomes automatic and verifiable.
Why This Matters From 2026
From 1 January 2026, KRA validates every expense declared on tax returns against eTIMS data at the point of filing. If a business expense doesn't have a matching eTIMS invoice, KRA may disallow it — meaning you lose the tax deduction and pay more tax on that amount.
This is a fundamental change from previous years, when you could claim expenses based on paper receipts or internal records. Now, the invoice must exist in KRA's eTIMS database.
Who Needs eTIMS?
Every business in Kenya, regardless of size. This includes:
- VAT-registered businesses (above the KES 5 million annual turnover threshold)
- Non-VAT businesses that issue invoices to clients
- Freelancers and consultants
- Landlords receiving rental income (particularly commercial landlords)
- Suppliers in any value chain — if your business buys from you, they need your eTIMS invoice
The Cost of Non-Compliance
Here's a concrete example: If you spent KES 2 million on stock/supplies but don't have eTIMS invoices from your suppliers, KRA adds that KES 2 million back to your taxable income. At a 30% corporate tax rate, that's KES 600,000 in extra tax on expenses you actually incurred.
How to Access eTIMS
You can generate and receive eTIMS invoices through several channels:
- KRA eTIMS portal — etims.kra.go.ke (web browser)
- eTIMS mobile app — available on Android and iOS
- Shuru WhatsApp bot — message 0711 099 999 (good for individual invoices)
- USSD *222# — for simple transactions without internet
- Third-party tools like KompliTax — for bulk generation, AI categorization, and compliance management
eTIMS Invoice vs Regular Receipt
An eTIMS invoice contains your business KRA PIN, the buyer's KRA PIN (for B2B transactions), a unique KRA-generated invoice number, and is registered in KRA's database in real time. A paper receipt or PDF without these elements is not an eTIMS invoice and cannot be used to claim tax deductions from 2026 onward.