What is eTIMS and do I really need it?

If you run a business in Kenya, someone has told you about eTIMS in the last six months. Maybe your accountant. Maybe a supplier refusing to invoice you without it. Maybe KRA themselves, in a way that made your stomach drop.

Here is what it actually is, in the fewest words possible.

What is eTIMS?

eTIMS is the system KRA uses to see every invoice issued in Kenya, in real time.

When you sell something, your invoice has to go through eTIMS. KRA stamps it with a special number and a QR code. Without that stamp, the invoice doesn’t count — your customer can’t claim the VAT, and you can’t claim the expense at the end of the year.

That’s the whole thing. It’s a stamp. Digital, automatic, but a stamp.

Do I need it?

If you are VAT-registered, you have needed it since January 2024.

If you are not VAT-registered but want KRA to accept your business expenses at year-end, you have needed it since September 2024.

In practice: yes, you need it.

What happens if I don’t have it?

Three things, in order of severity.

1. You lose money. Every invoice your supplier issues without an eTIMS stamp becomes an expense KRA will not accept. You pay tax on that amount as if it were profit.
2. Your customers stop buying. Bigger companies refuse to pay suppliers who can’t issue eTIMS invoices. They’re protecting their own books.
3. KRA notices. The penalty can reach twice the undeclared tax, plus interest. Not the fight you want.

How do I get it?

Two ways.

The hard way: buy a little hardware device from KRA (called an OSCU), plug it into your till, and hope everyone remembers to use it.

The easier way: install the software version (called VSCU) on a computer you already own. This is what most businesses are moving to.

Either way, you end up with the same result: your invoice software talks to KRA, KRA stamps the invoice, and you print the stamped version for your customer.

How it looks when it’s working

A good eTIMS setup should feel invisible. You hit “submit” on an invoice; three seconds later, the printed copy has the KRA number and QR code on it. Your customer can scan the QR with their phone and see the invoice on KRA’s own website. That’s how they know it’s real.

If your business is running on Excel, an eTIMS rollout usually means upgrading to a proper invoice system at the same time — because Excel can’t talk to KRA on its own.

What you should do this week

1. Check with your accountant whether you’re compliant today. Honestly, not defensively.
2. Count how many suppliers you use that still send non-eTIMS invoices. Every one is costing you money.
3. Pick a system that has eTIMS built in, not bolted on. Ask the vendor to show you a live invoice being stamped, not a slide deck.

That’s it. It’s not as scary as people make it.

If you want a walk-through of how eTIMS looks inside a proper business system, book a call. Thirty minutes; we’ll show you the real thing.