E-invoicing in Kenya

Kenya requires businesses to issue electronic tax invoices through the Kenya Revenue Authority's eTIMS system, subject to applicable exemptions and special arrangements.

B2B mandatory Approval in progress

At a glance

B2B e-invoicing Mandatory

B2G e-invoicing To be confirmed

Infrastructure eTIMS/Kenya Revenue Authority (KRA)

Mandatory electronic tax invoicing was extended to businesses generally from 1 September 2023. From 1 January 2024, business expense deductions generally require supporting electronic tax invoices.

Key e-invoicing deadlines

1 September 2023

Completed

Expansion of mandatory electronic tax invoicing

Electronic tax invoicing requirements were extended to businesses generally, including many businesses not registered for VAT, subject to applicable exemptions.

1 January 2024

Completed

Electronic invoices required for expense deductions

Business expense deductions generally became subject to supporting electronic tax invoice requirements, with exceptions under applicable tax rules.

Overview

Kenya has established mandatory electronic tax invoicing requirements through the Kenya Revenue Authority (KRA). The country's Electronic Tax Invoice Management System (eTIMS) enables businesses to issue electronic tax invoices and transmit relevant invoice information to the tax authority.

Electronic tax invoicing requirements have been expanded beyond VAT-registered businesses, making eTIMS relevant to a broad range of businesses operating in Kenya.

Unlike Peppol-based e-invoicing frameworks, Kenya's system focuses on electronic tax invoicing and compliance with national tax reporting requirements.

Who must comply

Businesses operating in Kenya are generally required to issue electronic tax invoices through eTIMS, including many businesses that are not registered for VAT.

The requirements apply broadly to business transactions, subject to specific exemptions and arrangements established by the Kenya Revenue Authority.

Businesses should assess their obligations based on their tax registration, activities and the applicable KRA requirements.

Requirements

Businesses subject to Kenya's electronic tax invoicing requirements must issue compliant invoices using an approved eTIMS solution.

Electronic invoices must contain the required tax and transaction information and be processed in accordance with the Kenya Revenue Authority's requirements.

From 1 January 2024, business expense deductions generally require supporting electronic tax invoices, subject to applicable exceptions. Businesses should therefore ensure that their invoicing processes support both invoice issuance and tax compliance.

Formats and infrastructure

Kenya's electronic tax invoicing infrastructure is based on the Electronic Tax Invoice Management System (eTIMS), administered by the Kenya Revenue Authority.

Businesses can use different eTIMS solutions depending on their operational needs, including online invoicing tools and system-to-system integrations.

For businesses using existing ERP or accounting systems, KRA provides integration options through its approved technical framework, including Online Sales Control Unit (OSCU) and Virtual Sales Control Unit (VSCU) solutions.

Kenya does not use Peppol as its primary national electronic tax invoicing infrastructure.

How iEDI can help

iEDI is working on expanding its e-invoicing coverage to include Kenya.

Our goal is to help businesses connect their existing ERP and business systems to the relevant electronic invoicing infrastructure without replacing their current setup.

If your business operates in Kenya, contact us to discuss your electronic invoicing requirements and learn more about our plans for supporting the Kenyan market.

Frequently asked questions

Is electronic invoicing mandatory in Kenya?

Yes. Kenya generally requires businesses to issue electronic tax invoices through the Kenya Revenue Authority's eTIMS system, including many businesses that are not registered for VAT. Certain exemptions and special arrangements apply.

Which businesses must comply with Kenya's eTIMS requirements?

Electronic tax invoicing requirements apply broadly to businesses operating in Kenya, including many non-VAT-registered businesses. The specific obligations depend on the business's activities, tax status and applicable KRA exemptions.

What is eTIMS in Kenya?

eTIMS is the Electronic Tax Invoice Management System operated by the Kenya Revenue Authority (KRA). It enables businesses to issue electronic tax invoices and transmit the required invoice information to the tax authority.

Can businesses integrate their ERP systems with eTIMS?

Yes. KRA provides integration options for businesses using ERP and accounting systems, including Online Sales Control Unit (OSCU) and Virtual Sales Control Unit (VSCU) solutions, subject to applicable technical requirements.

Does iEDI support e-invoicing in Kenya?

iEDI is working on expanding its e-invoicing coverage to include Kenya. Contact us to discuss your requirements and learn more about our plans for supporting the Kenyan market.

Planning ahead?

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Talk to us about the upcoming requirements and iEDI's plans for supporting electronic invoicing in Kenya.

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