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Last updated at
December 23, 2025
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Book NowKenya’s Revenue Authority (KRA), under the Tax Procedures (Electronic Tax Invoice) Regulations, 2024 (Legal Notice No. 64 of 2024), has introduced a national Electronic Tax Invoicing system (eTIMS) in line with recent tax-procedure reforms. The system makes structured e-invoicing mandatory for all businesses carrying on trade, fundamentally changing how businesses issue, transmit, and validate invoices across the country.
The mandate requires all persons carrying on business, whether VAT-registered or not, to issue invoices via a KRA-prescribed system. Any invoice not generated in a compliant system or not transmitted to KRA may not qualify as a valid electronic tax invoice.
E-invoicing is designed to improve transparency, reduce tax evasion, automate record-keeping for both businesses and the KRA, and ensure accurate, real-time reporting of transactional data. This blog explains the requirements of the system, key deadlines, technical process, benefits, and how providers like Flick Network help companies comply smoothly with the new law.
E-invoicing in Kenya refers to the electronic generation, transmission, and storage of invoices in a structured, secure format using a system prescribed by KRA (eTIMS), instead of relying on purely paper-based documents or unstructured digital receipts. Under the regulations, each invoice must be created in a compliant system and must capture specific data elements as stipulated by KRA.
Once generated, invoice data must be transmitted to KRA’s system. The user is also required to maintain “stock-in” and “stock-out” electronic records to tie inventory movements to invoice issuance. Invoices that are simply scanned paper receipts or emailed PDFs without going through a compliant system do not meet the requirement.
The law mandates a rich set of invoice fields: seller PIN, buyer PIN (if the buyer claims input tax), serial number, date-time of issue, gross and tax amounts, item code, description, quantity, unit, tax rate, a unique system identifier, an invoice identifier, and a QR code. Through eTIMS, both businesses and KRA maintain consistent, auditable, tamper-resistant records. This supports traceability, real-time validation, and efficient audits.
1 September 2023: The requirement came into effect. From this date, all persons carrying on business (VAT and non-VAT) are mandated to electronically generate and transmit tax invoices via eTIMS.
1 January 2024: Any business expenditure not supported by a valid eTIMS-generated invoice may not be deductible for income tax.
31 March 2024: Deadline for non-VAT registered taxpayers to onboard to the eTIMS system without penalties during the onboarding window.
28 March 2024: The Electronic Tax Invoice Regulations (Legal Notice No. 64) officially commenced.
The e-invoicing mandate under Kenya’s Legal Notice No. 64 applies broadly:
All persons carrying on business in Kenya, unless exempted under Section 23A of the Tax Procedures Act.
VAT-registered taxpayers, who already had earlier obligations under prior TIMS regulation.
Non-VAT-registered businesses, from 1 September 2023, as per the Finance Act, are also required to issue invoices via eTIMS.
Excluded transactions include:
emoluments, imports, investment allowances, airline passenger ticketing, interest, fees from financial institutions, services by non-resident persons without a permanent establishment in Kenya, and expenses subject to final withholding tax. KRA also retains the power to exempt certain persons or transactions via a gazette notice.
The business must use an electronic invoicing system that is prescribed by KRA (eTIMS).
The system must always be available at the point of sale, be secure and tamper-proof, record user activity via logs, and maintain version history.
When the system fails, the user must notify KRA within 24 hours and record sales using alternate means permitted by KRA, then later upload or enter them into eTIMS.
The system must have sufficient data storage and be able to display required information in English or Kiswahili.
Invoices must contain the defined fields (PINs, serial number, QR code, etc.).
Once issued, invoice details must be transmitted to KRA’s system in real-time or near real-time.
The system must maintain data integrity, authenticate users, store logs, and generate a unique identifier per invoice.
The system must track local purchases and imports (stock-in), and sales (stock-out).
Upon business closure, the user must notify KRA in writing 30 days before discontinuation (or within 7 days if unplanned), and report current stock or stock transfer.
Certain transactions are excluded, as noted above.
Businesses may apply for exemptions; KRA may exempt users if they use alternative automated systems or if their income comes via a payment platform approved by KRA.
Small, non-VAT businesses using simplified systems may be allowed to use systems without stock records.
Non-compliance, tampering, or not using a KRA-approved system is an offence.
Penalties apply under Section 86 of the Tax Procedures Act, depending on the nature of the offence (not a flat “twice the tax due” in all cases).
Transparency & Compliance: Real-time data transmission gives KRA visibility into business sales.
Automation & Efficiency: Reduces manual work and errors.
Integrity of Data: Structured data and unique identifiers prevent tampering.
Tax Deduction Assurance: Only expenses backed by valid eTIMS invoices will be deductible for income tax from January 2024.
Reduced Paperwork and Costs: Digital storage reduces printing and archiving costs.
Audit Readiness: Logs and transmission history support smooth audits.
Non-Deductible Expenses: From 1 January 2024, expenses without valid eTIMS invoices may not be deductible.
Penalties: Non-compliance, tampering, or using non-compliant systems attracts penalties under the Tax Procedures Act.
VAT Risks: Non-compliant invoices may jeopardize VAT input claims or refunds.
Loss of Tax Compliance Certification: VAT taxpayers may be denied a Tax Compliance Certificate.
Operational Disruption: System failures or non-integration can interrupt invoicing workflows.
Evaluate Your Systems:
Check if your current billing, accounting, ERP, or POS systems can integrate with eTIMS.
If not, upgrade to a system that supports eTIMS-compliant invoicing.
Onboard to eTIMS:
Register on the eTIMS platform as early as possible.
Decide whether to use eTIMS Lite or full integration via a software client or API.
Train Your Team:
Train staff on generating e-invoices, transmitting them, and maintaining stock records.
Train them on downtime procedures.
Implement Secure Archiving:
Ensure secure storage of invoice data, logs, and transmission history.
Conduct periodic internal audits.
Apply for Exemptions (if relevant):
Apply for exemption if you qualify.
Monitor KRA gazette notices.
Monitor Compliance:
Track e-invoice performance, rejections, and transmission issues.
Use dashboards or reporting tools.
Flick Network offers a compliance-first invoicing platform tailored for businesses operating in Kenya under KRA’s eTIMS framework. Here’s how Flick helps:
Structured Invoice Generation: Flick can generate e-invoices in a structured format that meets all the fields required by KRA, such as seller PIN, buyer PIN, invoice ID, QR code, etc.
Transmission & Reporting: Flick connects seamlessly to KRA via the eTIMS interface, enabling secure and automated transmission of invoice data, with validation and status tracking.
Archiving & Logging: All invoices, transmission logs, and system activity are stored securely in Flick’s digital archive. This ensures traceability of every invoice for audits or internal review.
System Integration: Flick provides integration with existing ERP, billing, POS, or mobile systems with limited disruption and less manual work. It offers versatility for businesses of all sizes – whether through API, web interface, or client app.
Continuous Support for Compliance: Flick's platform is continually maintained in line with regulatory requirements (schema updates, versioning, etc.). Flick supports onboarding and training, and will offer technical support to businesses in compliance.
Kenya’s shift to mandatory structured e-invoicing under the Tax Procedures (Electronic Tax Invoice) Regulations, 2024 is a major milestone in digitising tax compliance. From 1 September 2023, all businesses carrying on trade are required to generate and transmit e-invoices via eTIMS, and from 1 January 2024, only eTIMS-compliant invoices are valid for income tax deductions.
By preparing early; evaluating systems, onboarding, training staff, and implementing secure archiving - businesses can stay ahead. Compliance does not just mean avoiding penalties. It also means operating more efficiently, ensuring data integrity, and being audit-ready. Platforms like Flick Network help make that transition seamless by managing structured invoice generation, transmission, archiving, and ongoing regulatory compliance.
E-invoicing is not just a regulatory burden. It is an opportunity to modernise business operations, strengthen transparency, and build a more accountable, digital-first tax ecosystem in Kenya.
What is eTIMS in Kenya?
eTIMS stands for Electronic Tax Invoice Management System, which is KRA’s prescribed system for generating, transmitting, and storing electronic tax invoices.
Who must comply with Kenya’s e-invoicing mandate?
All persons carrying on business in Kenya (VAT-registered or not), unless exempted under certain conditions in the law.
What happens if I do not issue a valid eTIMS invoice?
If your invoices are not generated via a compliant eTIMS system, your expenses may not be deductible for tax, and penalties may apply.
Which transactions are excluded from e-invoicing?
Transactions like emoluments, imports, certain financial fees, interest, airline ticketing, services provided by non-resident persons without a permanent establishment in Kenya, and expenses subject to final withholding tax.
How long do I need to keep e-invoice records?
Your system must securely archive invoice data, user logs, and transmission history so they can be retrieved for audits and compliance review.
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