Short answer: KRA says persons engaged in business should use eTIMS, subject to current statutory exclusions and taxpayer-specific facts. Small businesses can use applicable free KRA channels or a third-party workflow such as Risiti. KRA onboarding and invoice acceptance must be confirmed before you rely on the setup.
What Is eTIMS and Why Does It Affect Your Small Business?
eTIMS stands for Electronic Tax Invoice Management System. It is KRA's system for electronic tax-invoice records and includes several taxpayer and system-integration channels. A completed submission returns receipt identity and verification data; a draft or pending record is not the same as an accepted invoice.
This affects both sales records and purchase evidence. Confirm which transactions require an electronic invoice, capture accurate buyer and tax details, and verify supplier invoices that support business expenses. A buyer's procurement policy and the tax treatment of a specific expense still need separate assessment.
Who Must Use eTIMS in Kenya?
KRA guidance is broad, but current statutory exclusions and taxpayer-specific facts still matter. Businesses that commonly need to assess the rule include:
- Freelancers and consultants — graphic designers, IT professionals, lawyers, accountants
- Sole traders and market vendors — anyone selling goods or services
- Small and medium companies — limited companies, partnerships, NGOs
- Both VAT-registered and non-VAT businesses — eTIMS is not just for VAT taxpayers
- Rental income earners — if you issue receipts for rent
The 2024 Electronic Tax Invoice Regulations list transaction exclusions and allow specified exemptions. Check current KRA guidance for your activity instead of assuming business size alone creates an exclusion.
What Happens If You Don't Comply?
Non-compliance can affect the taxpayer, the buyer and the invoice record in different ways. The outcome depends on the facts and current law.
Notice and penalty process
Tax Procedures Act section 86 starts with a notice requesting reasons. If those reasons are unsatisfactory, it provides for a penalty of two times the tax due.
Expense-deduction risk
Income Tax Act section 16 can deny a deduction where the invoice was not generated through eTIMS, subject to statutory exclusions.
Buyer record delays
A business buyer may require a valid invoice and correctly captured buyer PIN before completing its records.
Reconciliation problems
Failed, missing or duplicate submissions need a documented correction process to preserve the audit trail.
How Much Does eTIMS Cost for a Small Business?
There are three ways to comply, at very different price points:
KRA eTIMS Lite — Free
KRA provides free eCitizen, USSD and mobile options for eligible taxpayers. Choose based on tax status, transaction type, device and workflow.
Risiti Business — see current pricing
App, Direct API, and Platform API billing for a mobile-first invoice workflow, status visibility, PDF sharing, retries and M-Pesa billing. KRA onboarding time depends on the taxpayer record and connection.
Existing system or third-party integration — cost varies
Businesses with POS, ERP, branch or bulk workflows may use Client, OSCU or VSCU routes. Implementation and support costs depend on the selected system.
How to Start Your Small-Business eTIMS Setup
Go to getrisiti.com and click 'Start free'
No app download needed — works in your phone browser.
Enter your phone number and verify with OTP
A 6-digit code arrives via SMS within seconds.
Add your KRA PIN and business name
Risiti connects to KRA's OSCU system automatically.
Confirm the connection, then issue an invoice
Add buyer details, select items and choose the payment method. Share the receipt only after KRA submission is confirmed.
Frequently asked questions
Open a question to read the answer.
I'm not VAT-registered. Do I still need eTIMS?
VAT status is not the only eTIMS test. Check current KRA guidance and statutory exclusions for your activity. Risiti supports configured non-VAT and VAT tax treatments after onboarding.
Do I need an ETR device?
KRA provides several software routes, including eCitizen, Client, OSCU and VSCU. Risiti uses an OSCU-based workflow; the applicable KRA onboarding and taxpayer setup still have to be completed.
I already use an accountant. Can they handle eTIMS for me?
Your accountant can advise on tax compliance, but eTIMS submission happens at the point of sale — when you issue the receipt. Risiti puts this in your hands directly, so receipts are submitted to KRA in real time without waiting for your accountant.
What if KRA's system is down when I'm issuing a receipt?
Risiti saves the invoice immediately and retries submission every 5 minutes automatically. You can keep working — the receipt queue runs in the background and you're notified when KRA confirms.
Does my buyer need to do anything to verify the receipt?
No. Every receipt issued through Risiti includes a KRA-generated QR code. Your buyer can scan it on the KRA iTax portal to verify the invoice is authentic. No action needed from you beyond issuing the receipt.