What is eTIMS?
eTIMS (electronic Tax Invoice Management System) is the Kenya Revenue Authority's software-based invoicing system, succeeding the hardware-based TIMS control units. Every invoice is transmitted electronically to KRA at the time of sale, carrying KRA control data and a verifiable QR code. Unlike TIMS, eTIMS needs no fiscal device — compliance runs through software such as PeppyBooks.
Who must comply?
eTIMS obligations extend far beyond VAT-registered companies. All persons carrying on business in Kenya — including those under turnover tax and businesses below the VAT threshold — are required to issue electronic tax invoices. Critically, since 1 January 2024, business expenses not supported by an eTIMS invoice are not deductible for income tax, which means your customers will demand eTIMS invoices from you.
eTIMS onboarding options
| Option | Best for | How it works |
| eTIMS via software (VSCU/OSCU) | Businesses running accounting/ERP systems | Invoices clear KRA automatically from your billing software — PeppyBooks uses this route |
| eTIMS Client application | Businesses invoicing from a single computer | Standalone KRA application installed locally |
| eTIMS Lite / online portal | Very small traders with few invoices | Manual invoice entry on KRA's portal or USSD |
Verify current onboarding requirements at kra.go.ke.
Penalties and business risks
Beyond statutory penalties for failing to issue electronic tax invoices, the practical enforcement is commercial: your B2B customers cannot deduct expenses paid to you without an eTIMS invoice, so non-compliant suppliers get dropped. Input VAT claims also require valid electronic invoices, and KRA's visibility of transaction data makes discrepancies between invoices and returns easy to detect.
How to choose eTIMS software
- Real-time clearance from your billing screen — not batch uploads
- Offline queueing for shops and vans outside coverage
- Credit notes referencing the original cleared invoice
- Full accounting behind the invoice so VAT returns match to books
- POS and mobile/van-sales billing on the same compliance flow