You’ve probably heard the buzz about eTIMS. Maybe you’ve seen the emails from KRA. But here’s the real headline: if your business isn’t issuing eTIMS-compliant invoices by now, you’re officially behind.

The Electronic Tax Invoice Management System (eTIMS) isn’t just another tool—it’s the foundation of Kenya’s digital tax future. Whether you’re a small shop in Kisumu or a corporate vendor in Westlands, eTIMS applies to you.

And no—it doesn’t matter if you’re VAT-registered or not.

What is eTIMS—And Why Should You Care?

eTIMS is KRA’s digital invoicing system that replaces manual receipts and outdated POS records with real-time, trackable, cloud-based invoicing.

It’s designed to:

• Ensure businesses issue valid tax invoices
• Make compliance easier and more transparent
• Reduce tax evasion and improve national revenue collection

🔎 Key Takeaway: From January 2024, ALL businesses are expected to issue invoices through eTIMS—no exceptions.

Who Must Comply?

Here’s the simple answer: Everyone in business.

eTIMS applies to:

• ✅ Non-VAT small and micro businesses
• ✅ Side hustlers & freelancers
• ✅ VAT-registered businesses
• ✅ Sole proprietors
• ✅ Informal traders
• ✅ Limited companies and NGOs

💬 If you issue invoices and claim expenses, you must issue them electronically—or your customers can’t use them in tax deductions.

What Happens If You Don’t Comply?

• Your clients can’t claim tax deductions
• You may be flagged for non-compliance by KRA
• You risk audits, penalties, or even deregistration
• You’ll lose trust in B2B markets that depend on compliant supply chains

How to Implement eTIMS in 4 Phases

We’ve helped over 200 Kenyan businesses across multiple sectors onboard to eTIMS—here’s the smoothest path:

Phase 1: Self-Onboarding

1. Visit the eTIMS Portal: etims.kra.go.ke
2. Click Sign Up and enter your KRA PIN
3. Verify via OTP sent to your iTax-linked number
4. Fill in business details: sector, nature of goods/services, structure
5. Submit application
6. Wait for confirmation via SMS or email

Phase 2: Choose Your Version

• eTIMS Full: Ideal for VAT-registered or medium to large enterprises with integrated POS or ERP systems
• eTIMS Lite: Simplified version for micro and small businesses (non-VAT)

Choose web-based or installable versions based on your operations.

Phase 3: Enter Historical Data

Required for compliance. All invoices issued manually from Jan 1, 2024, must be entered into the system.

📅 Why this matters: KRA wants to ensure continuous transaction visibility, even for periods before digital onboarding.

Phase 4: Daily Use, Staff Training & Integration

• Train your team on issuing e-invoices
• Automate where possible
• Integrate with your ERP or POS systems for seamless invoicing like Zoho
• Back up records—even if eTIMS stores them

Common eTIMS Challenges & How to Overcome Them

Challenge	Solution
Internet downtime	Use offline invoicing options, then sync
Staff confusion	Conduct training workshops
Data entry overload	Phase out backlog input across 30 days
Legacy POS system conflict	Consult with eTIMS-certified vendors for APIs

To read more about the eTIMS platform visit: eTIMS FAQs or Kenya Revenue Authority platform

Latest news on eTIMS platform

Conclusion

eTIMS implementation represents a fundamental shift in how businesses handle tax compliance and invoicing in Kenya. Success requires careful planning, systematic execution, and ongoing commitment to proper system utilization. The investment in proper implementation pays dividends through improved compliance, operational efficiency, and stronger business relationships.

The transition to electronic invoicing is not merely about regulatory compliance—it’s about positioning your business for success in an increasingly digital economy. Businesses that embrace eTIMS comprehensively will find themselves better equipped to handle future technological advances and regulatory changes.

Remember that Taxpayers have been facilitated to self-on-board on eTIMS by eliminating the requirement for intervention from KRA in the approval of applications, making the implementation process more streamlined than ever before. Take advantage of this simplified process to ensure your business remains compliant and competitive.

The journey to full eTIMS compliance may seem complex, but with systematic implementation and commitment to best practices, your business will emerge stronger, more efficient, and fully prepared for the digital future of tax compliance in Kenya.