Kenya
e-Invoicing Mandate

This guide provides an overview of e-Invoicing requirements in Kenya, including the legal framework, the use of the eTIMS platform, compliance obligations, and key reporting considerations. It is intended to assist businesses that issue or receive invoices for transactions subject to VAT in Kenya.

Tax Authority

Kenya Revenue Authority

Mandate Go-Live Date

1 September 2023

Digital Signature

Required

Archiving

Mandatory - 4 Years

Invoice Format

Local XML

Kenya introduced electronic tax invoicing to modernise tax administration and enhance VAT compliance. The system evolved from Electronic Tax Registers, ETRs, to the Tax Invoice Management System, TIMS, and ultimately to the cloud-based Electronic Tax Invoice Management System, eTIMS. Effective 1 September 2023, the Finance Act 2023 mandated eTIMS for all businesses, regardless of VAT registration status. From 1 January 2024, only expenses supported by valid electronic tax invoices generated and transmitted through eTIMS qualify for income tax deductions. Kenya operates a clearance-based e-invoicing model requiring real-time transmission and validation of invoice data through the Kenya Revenue Authority, KRA.

Mandate Details

Mandate Status

Which types of transactions must be reported via e-Invoicing?

Effective: September 2023

Kenya’s e-Invoicing mandate is fully active.

Mandatory B2G, B2B, and B2C e-Invoicing with real-time/near real-time reporting to KRA.

Are there any thresholds that determine e-Invoicing applicability?

General mandate: No turnover threshold – applies to all businesses regardless of size or VAT registration.

Exception: Buyer-Initiated Invoicing – If supplier’s annual turnover ≤ KES 5 million, purchaser must issue invoice on supplier’s behalf via eCitizen platform.

Taxpayers who adopt the flat-rate regime
Third sector entities with revenue/fees of EUR 65,000 and over
Microenterprises with revenue/fees of EUR 25,000 and over
All taxable persons, residents or established, in Italy if their annual revenue is above EUR 25,000
Amateur sports associations

What are the implementation dates of the e-Invoicing mandate?

Transaction Type

1 Sept 2020 (TIMS Reg.)

1 Aug 2021 (TIMS Live)

1 Sept 2023 (eTIMS Launch)

1 Jan 2024

2030 (EU ViDA)

Local - B2G (Public)

N/A

Local - B2B (Domestic)

N/A

Local - B2C (Domestic)

N/A

Local - Cross-border reporting

N/A

Foreign - B2B/B2C (non-established)

***

N/A

Mandatory electronic invoice issuance and transmission in effect

Mandatory use of compliant Electronic Tax Registers (ETRs) under Legal Notice 189

Real-time transmission via TIMS integration

***

Applies to businesses operating in Kenya (including VAT-registered and, from 2023, non-VAT registered entities)

Not mandatory

N/A

EU ViDA not applicable (Kenya is non-EU)

Do I need to have a permanent establishment in Kenya to be required to e-Invoice?

Domestic businesses (resident):

All persons engaged in business in Kenya must issue eTIMS invoices, regardless of VAT registration status.

Non-resident businesses:

If a non-resident has a Permanent Establishment (PE) in Kenya, VAT applies and the entity must comply with eTIMS requirements.

Services from non-residents without a PE:

Excluded from the eTIMS invoice requirement.

Non-resident suppliers of digital B2C services: Exempt from eTIMS obligation.

Do I need a VAT registration in Kenya in order to apply for e-Invoicing?

No. The eTIMS mandate applies to all persons engaged in business, regardless of VAT registration status.

This includes:

VAT-registered and non-VAT registered businesses
Corporations, partnerships, individuals (resident and non-resident with PE)
Exception: Non-resident digital B2C suppliers are exempt.

What is the prescribed deadline for submitting e-Invoices?

Invoices must be issued at the time of supply. Invoice data must be transmitted to KRA in real-time or near real-time before final issuance.

Are there any penalties for non-compliance?

Penalty equal to twice the tax due if e-invoice not issued or transmitted

Penalties for tampering with eTIMS system

Non-compliant VAT taxpayers not eligible for VAT refunds or tax compliance certificates

From 1 January 2024, unsupported expenses are not deductible for income tax purposes

Steps to be performed by customer:

1. Register and onboard on the eTIMS platform.

2. Select the appropriate eTIMS solution or integration method, such as eTIMS Lite, eTIMS Client, or system-to-system integration through OSCU or VSCU.

Steps VAT IT can assist with:

3. Configure the ERP or accounting system to generate the required invoice data in the accepted local XML or JSON format, or integrate with a suitable service provider.

4. Submit invoice data in real time for validation through OSCU/KRA and obtain the required control details, including the Control Unit Invoice Number, receipt signature, and QR code data.

5. Issue the validated invoice to the buyer in printed or digital form.

6. Implement compliant archiving for at least five years, ensuring invoices and records remain accessible for KRA inspection.

In summary

eezi can assist by integrating with the client’s ERP or accounting system and interfacing with the OSCU/VSCU flow to generate and transmit eTIMS-compliant invoice data.

eezi can help structure invoice data in the required XML or JSON format, submit it for validation, capture the Control Unit Invoice Number, receipt signature, and QR code data, and support delivery of the validated invoice to the buyer. eezi can also support reporting response handling, data transformation, and compliant electronic archiving within the e-invoicing process.

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Kenya
e-Invoicing Mandate

Tax Authority

Kenya Revenue Authority

Mandate Go-Live Date

1 September 2023

Digital Signature

Required

Archiving

Mandatory - 4 Years

Invoice Format

Local XML

Effective: September 2023

B2B

B2C

B2G

Cross-border:

Exempt from eTIMS invoice requirement:

Are there any thresholds that determine e-Invoicing applicability?

What are the implementation dates of the e-Invoicing mandate?

Non-resident suppliers of digital B2C services: Exempt from eTIMS obligation.

No. The eTIMS mandate applies to all persons engaged in business, regardless of VAT registration status.

Invoices must be issued at the time of supply. Invoice data must be transmitted to KRA in real-time or near real-time before final issuance.

Steps to be performed by customer:

Steps VAT IT can assist with:

In summary

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Personal information

Kenya e-Invoicing Mandate

Tax Authority

Kenya Revenue Authority

Mandate Go-Live Date

1 September 2023

Digital Signature

Required

Archiving

Mandatory - 4 Years

Invoice Format

Local XML

Effective: September 2023

B2B

B2C

B2G

Cross-border:

Exempt from eTIMS invoice requirement:

Are there any thresholds that determine e-Invoicing applicability?

What are the implementation dates of the e-Invoicing mandate?

Non-resident suppliers of digital B2C services: Exempt from eTIMS obligation.

No. The eTIMS mandate applies to all persons engaged in business, regardless of VAT registration status.

Invoices must be issued at the time of supply. Invoice data must be transmitted to KRA in real-time or near real-time before final issuance.

Steps to be performed by customer:

Steps VAT IT can assist with:

In summary

Split Payment VAT: How It Works and Where It Applies

Spain’s e-Invoicing Landscape Changes

Can You Reclaim VAT on Corporate Events When Family Members Are Invited?

Kenya
e-Invoicing Mandate