eTIMS vs ETR in Kenya 2026: Which One Your Business Must Use

Updated 27 October 2026

An ETR (Electronic Tax Register) under KRA’s TIMS system is a physical device that VAT-registered businesses use to issue tax invoices, while eTIMS is KRA’s free software for issuing electronic tax invoices on a phone, computer or by USSD, and it is open to every business, VAT-registered or not. If you already use a TIMS ETR and it works, KRA says you can keep using it. If you have no device, or you are not registered for VAT, eTIMS is the route KRA provides.

Both systems do the same core job: they create a tax invoice and send it to KRA. The differences are in who can use them, what they cost and how flexible they are. This matters because, as KRA explains, since 1 January 2024 a business expense can only be claimed if it is backed by an electronic tax invoice. A supplier who cannot give you a valid invoice effectively makes your purchase more expensive, because you cannot deduct it.

eTIMS vs ETR: Side-by-Side Comparison

What Is an ETR Under TIMS?

TIMS stands for Tax Invoice Management System. Under it, VAT-registered businesses used compliant electronic tax registers, devices with a control unit that records each sale and transmits the invoice to KRA. Many shops, supermarkets and restaurants still issue receipts from these machines.

KRA’s FAQ is clear on their status: VAT-registered taxpayers who adopted the TIMS ETR may continue using the devices for invoicing and transmitting tax invoices. Those facing technical challenges with their devices are encouraged to move to eTIMS so the business keeps running. To retire a device, log in to iTax, open the TIMS Menu and click Retire Control Unit Device.

What Is eTIMS?

eTIMS, the electronic Tax Invoice Management System, is KRA’s software for issuing tax invoices. KRA offers it free of charge, including the online portal and the eTIMS Client software. The options are:

• Online Portal (etims.kra.go.ke): for businesses that supply services only.
• eTIMS Client: downloadable software for Windows and Android, for businesses selling goods or goods and services; it supports several branches and cashier tills.
• eTIMS Lite (Web) on eCitizen: for businesses with few transactions.
• eTIMS Lite (USSD) on *222#: for individuals and sole proprietors.
• eTIMS Lite mobile app, listed as “eTIMS Non VAT” on Play Store and the App Store.
• VSCU and OSCU: system-to-system links between your own invoicing or ERP system and eTIMS, for businesses with bulk or online invoicing.
• Reverse Invoicing and Buyer Initiated Invoicing: the buyer issues the invoice on behalf of the seller.

You can register on more than one solution. Each solution keeps its own invoice number sequence, and a credit note can only be raised on the solution that issued the original invoice. All invoices can be viewed on the taxpayer portal.

Who Must Use eTIMS?

KRA says all persons engaged in business must onboard eTIMS and issue electronic tax invoices. That includes companies, partnerships, sole proprietors, associations and trusts; people paying monthly rental income tax, turnover tax or annual income tax; informal-sector traders; and businesses that are not registered for VAT, such as hospitals, schools, tour operators and NGOs in business.

There is one important relief. Where you buy from a small business or small-scale farmer whose annual turnover does not exceed KSh 5 million, you as the buyer issue the invoice on their behalf through the Buyer Initiated Invoicing solution on eCitizen. For how turnover tax and VAT fit together, see turnover tax vs income tax vs VAT.

Which Should Your Business Use?

Expenses That Do Not Need an eTIMS Invoice

KRA lists these business costs as excluded from the eTIMS invoice requirement: salaries and wages, imports, air passenger tickets, investment allowances, interest, fees charged by financial institutions, expenses subject to a final withholding tax, and services from a non-resident without a permanent establishment in Kenya.

How to Get Started

1. Make sure you can receive SMS on your iTax-registered phone number, because sign-up uses a one-time password.
2. Register for eTIMS and pick your solution. See how to register for eTIMS as a small business.
3. Issue your first invoice. See how to generate an eTIMS invoice.
4. Check that invoices you receive are valid by scanning the QR code or using the invoice checker on iTax. See how to verify an eTIMS receipt or invoice.
5. At filing time, KRA checks declared expenses against invoices. See KRA expense validation and non-eTIMS upload.

For help, email timsupport@kra.go.ke or callcentre@kra.go.ke, see our KRA contact centre guide, or visit one of the KRA offices and service centres.

Frequently Asked Questions

Is eTIMS the same as an ETR?

No. An ETR is a physical device under TIMS for VAT-registered businesses. eTIMS is free KRA software that any business can use.

Can I still use my ETR machine?

Yes, if you are VAT-registered and it works. KRA encourages those with technical problems to move to eTIMS.

Does eTIMS cost money?

No. KRA offers it free. Only system-to-system integration through a third-party integrator may cost money.

Do non-VAT businesses need eTIMS?

Yes. KRA says all persons in business must issue electronic tax invoices, whether or not they are registered for VAT.

Can I use eTIMS without internet?

Yes. USSD *222# needs no internet, and eTIMS Client and VSCU keep invoicing offline and send invoices once you reconnect.

How do I retire an ETR device?

On iTax, open the TIMS Menu and click Retire Control Unit Device.

Rules checked on KRA’s What is eTIMS, Types of eTIMS Solutions and How to Onboard on eTIMS pages and its eTIMS FAQs (kra.go.ke) on October 26, 2026. KRA updates eTIMS often; follow the latest notices on its website.