Kenya
KEKenya runs a real-time invoice clearance regime in which every business invoice is generated or validated through the Kenya Revenue Authority’s eTIMS, and VAT input credits and income tax deductions depend on valid eTIMS invoices.
Guide reviewed .
Invoicing and electronic documents
eTIMS (electronic Tax Invoice Management System)
KRA’s invoicing platform. Invoices are transmitted to KRA in real or near-real time and validated before they count as electronic tax invoices. It is a national system, not connected to Peppol.
KRA-defined interfaces; no document standard such as UBL is published on the pages reviewed · Official source: KRA · What is eTIMS
eTIMS solutions for direct use
An online portal, the eTIMS Client for Windows and Android, and eTIMS Lite on the web (through eCitizen), by USSD (*222#) and as a mobile app. Each solution keeps its own invoice number sequence, and a credit note must come from the solution that issued the invoice.
KRA applications · Official source: KRA · Types of eTIMS solutions
eTIMS system-to-system integration (OSCU and VSCU)
Connects a business’s own invoicing or ERP system to eTIMS through an API, either as an Online Sales Control Unit (always online) or a Virtual Sales Control Unit (bulk invoicing, not always online). Businesses can build the link themselves or use a KRA-verified third-party integrator.
KRA API (OSCU and VSCU specifications) · Official source: KRA · eTIMS system-to-system integration
IFMIS (Integrated Financial Management Information System)
The government’s payment system, now integrated with eTIMS so that invoices submitted to public bodies for payment are checked against eTIMS records.
eTIMS invoice data · Official source: KRA · public notice, eTIMS–IFMIS integration (31 August 2026)
Peppol
Kenya has no national Peppol Authority, so OpenPeppol acts as the authority. No Peppol use for domestic invoicing was found in the KRA sources reviewed; Peppol delivery does not replace eTIMS.
Peppol BIS Billing where trading partners agree to use it · Official source: OpenPeppol · Peppol Authorities
Kenya’s regime is clearance, not exchange. An invoice is valid for tax purposes only once it has passed through eTIMS, and the buyer’s VAT credit and income tax deduction depend on it. A Peppol connection can carry a document to a Kenyan buyer, but the supplier still has to issue the invoice through eTIMS: through a KRA application, or by integrating its own system as an OSCU or VSCU. See KRA’s integration guidance.
When buying from small or informal suppliers, check whether the seller can issue eTIMS invoices. If not, use buyer-initiated invoicing so the expense stays deductible. Suppliers to government bodies should make sure the invoice they submit through IFMIS matches the eTIMS record exactly.
Legal guide
VAT · registered taxpayers
Mandatory since 1 June 2023 under eTIMSKRA enforced the Value Added Tax (Electronic Tax Invoice) Regulations, 2020 from 1 June 2023. VAT-registered taxpayers must issue electronic tax invoices and may claim input tax or refunds only on electronic tax invoices. Non-compliant taxpayers are refused a Tax Compliance Certificate and VAT refunds. Registered non-resident suppliers of digital services are exempt but must still show value and tax on their invoices or receipts.
Official source: KRA · public notice, enforcement of the electronic tax invoice (4 May 2023)All businesses · including non-VAT-registered
MandatoryAll persons carrying on business must generate and transmit invoices through eTIMS from 1 September 2023. Non-VAT-registered taxpayers had until 31 March 2024 to onboard without penalty, and had to enter manual invoices issued after 1 January 2024 into the system once onboarded.
Official source: KRA · public notice, electronic tax invoicing for non-VAT registered persons (27 December 2023)Income tax · expense deductions
In force from 1 January 2024Business expenditure not supported by a valid electronic tax invoice is not deductible for income tax. KRA ties this to section 16(1)(c) of the Income Tax Act. Exclusions include salaries and wages, imports, air passenger tickets, investment allowances, interest, financial institution fees, expenses subject to final withholding tax, and services from non-residents without a Kenyan permanent establishment.
Official source: KRA · What is eTIMSSmall suppliers · buyer-initiated and reverse invoicing
AvailableWhere a supplier’s annual turnover does not exceed KES 5 million, the buyer may issue the eTIMS invoice on the seller’s behalf (section 23A(3A) of the Tax Procedures Act). The seller has 30 days to accept or reject it. Buyer-initiated invoices cannot be raised for VAT-registered sellers. KRA-approved large buyers can also issue reverse invoices from their own systems, for example in the tea and coffee sectors.
Official source: KRA · Buyer-initiated invoicingB2G · invoices to government entities
eTIMS invoice required before paymentSuppliers to government entities must generate valid eTIMS invoices before submitting them for payment through IFMIS, and invoice details must match the eTIMS record.
Official source: KRA · public notice, eTIMS–IFMIS integration (31 August 2026)
Timeline
-
Electronic Tax Invoice Regulations gazetted
The Value Added Tax (Electronic Tax Invoice) Regulations, 2020 were published as Legal Notice No. 189 of 2020, introducing the earlier TIMS regime for VAT-registered taxpayers.
Official source: KRA · public notice, extension of time to comply with the VAT (Electronic Tax Invoice) Regulations, 2020 -
Rollout of compliant tax registers
Rollout of the regulations began, with VAT-registered taxpayers given twelve months to comply and a possible extension of up to six months.
Official source: KRA · public notice, extension of time to comply with the VAT (Electronic Tax Invoice) Regulations, 2020 -
Enforcement for VAT-registered taxpayers
Electronic tax invoices became enforced for all VAT-registered taxpayers; input tax claims require electronic tax invoices.
Official source: KRA · public notice, enforcement of the electronic tax invoice (4 May 2023) -
eTIMS extended to all businesses
The duty to generate and transmit invoices through eTIMS applies to all persons carrying on business, including those not registered for VAT.
Official source: KRA · public notice, electronic tax invoicing for non-VAT registered persons (27 December 2023) -
Expense deductions require eTIMS invoices
Business expenditure without a valid electronic tax invoice is no longer deductible for income tax, subject to the listed exclusions.
Official source: KRA · public notice, electronic tax invoicing for non-VAT registered persons (27 December 2023) -
Onboarding deadline for non-VAT taxpayers
Last day for non-VAT-registered taxpayers to onboard to eTIMS without penalty.
Official source: KRA · public notice, electronic tax invoicing for non-VAT registered persons (27 December 2023)
Peppol in Kenya
- Directory participants
- Not recorded
- Document families
- Not recorded
Peppol Authority: OpenPeppol.
Peppol Directory data as of .
How to read these numbersDocuments on Peppol
No document-support data has been published for this country.
Registrations over time
No registration history has been published for this country.
Registration dates in the current Directory snapshot.
Participants
No participants are recorded for this country in the Directory snapshot. This does not establish absence from Peppol.