eTIMS Registration in Kenya: How to Sign Up and Invoice From Your Phone

You register for eTIMS free of charge at etims.kra.go.ke with your KRA PIN, or, if you don't need VAT invoicing, through eCitizen or by dialling *222# on any phone. Every person carrying on business in Kenya — VAT-registered or not — now has to onboard onto the Kenya Revenue Authority's electronic Tax Invoice Management System and issue eTIMS invoices for sales, or the expense won't count for income tax purposes on the other side of the transaction. This guide walks through registration, generating your first invoice on a phone, what it costs (nothing, for the government's own tools), and why KRA has made this unavoidable from 2026. Checked against KRA's own eTIMS pages and notices in October 2026.

Quick facts

Who actually has to register for eTIMS

Short answer: almost everyone trading in Kenya. KRA's own guidance is blunt about this — companies, partnerships, sole proprietorships, professionals, landlords earning rental income, and turnover tax payers are all required to onboard, "whether VAT-registered or not" (KRA: Learn about eTIMS). That includes VAT-exempt outfits like schools, hospitals and NGOs, and it includes a mitumba trader at the market and the mama mboga on the corner, not just registered companies.

There's one practical carve-out. If your business turns over KES 5 million or less a year, you don't have to run your own eTIMS device or app — your buyer can raise the invoice on your behalf through Buyer-Initiated Invoicing (also called reverse invoicing), a system KRA formalised through guidelines published on 25 March 2025 (KRA: Buyer-Initiated Invoicing). You still need to be eTIMS-registered to use it — you're just not the one issuing invoices.

A small number of transactions are exempt altogether, including PAYE emoluments, imports already declared to customs, interest and dividends taxed at source, and airline ticketing (Section 23A, Tax Procedures Act).

How to register for full eTIMS (etims.kra.go.ke)

This is the route for VAT-registered businesses, companies, and anyone who wants the Online Portal, eTIMS Client software, or a system-to-system (VSCU/OSCU) integration. Steps, straight from KRA's own user guide:

1. Go to etims.kra.go.ke on any browser and click Sign-Up.
2. Enter your KRA PIN and click Verify — your taxpayer details load automatically. (No PIN yet? Here's how to apply for a KRA PIN first.)
3. Create a password (letters, numbers and a special character), then click Send OTP. Enter the code sent to the mobile number registered on iTax.
4. Confirm the data privacy statement and click Sign Up.
5. Log back in with your KRA PIN as the username and the password you just set.
6. Click Service request, then eTIMS.
7. If you're registering a company, enter the director's KRA PIN, verify it, and confirm the OTP sent to the director's phone.
8. Pick your eTIMS type — Online Portal, eTIMS Client, OSCU or VSCU — accept the terms, and submit. If you're applying for eTIMS Client, have the device's serial number and model name ready.
9. You'll get an SMS confirming the application went through.

(Source: KRA User Guide for eTIMS Registration.) KRA now approves most of these self-service, without a KRA officer stepping in, which is a change from the clunkier manual process of a couple of years ago (KRA press release, 27 February 2025).

How to register and invoice on your phone (eTIMS Lite)

If you're not VAT-registered — most small shops, salons and service providers aren't — you don't need the full system. eTIMS Lite is the version built for exactly this, and it runs entirely on a phone.

Via eCitizen (needs internet, works on any smartphone browser):

1. Go to ecitizen.kra.go.ke and sign in (or sign up if you're new to eCitizen).
2. Verify with an OTP sent to your email or phone.
3. Once you land on the KRA eCitizen dashboard, tap Invoicing (eTIMS).
4. Tick the boxes to accept the terms and privacy policy, then tap Activate E-Invoicing.
5. You're onboarded — you can now raise invoices straight from the same portal.

Via USSD (no internet or smartphone needed): Dial *222# from the line registered to your KRA PIN and follow the menu to register and generate invoices. This is the option KRA built for traders without a smartphone or reliable data — a kiosk owner in Kitale with a basic phone can comply the same as a shop in Westlands.

There's also an eTIMS Lite mobile app on the Play Store and App Store if you'd rather have an app icon than a browser tab (KRA: Learn about eTIMS).

Once you're onboarded, generating an invoice is the same logic everywhere: enter the buyer's PIN (get this right — a wrong or missing buyer PIN is one of the most common reasons an invoice gets rejected later), the item description, quantity and price, and submit. The system issues a QR-coded tax invoice instantly, which the buyer — or anyone — can verify on the iTax "invoice number checker".

What eTIMS actually costs

Nothing, if you stick to KRA's own tools. eTIMS Lite (web, USSD and app), the Online Portal and the basic eTIMS Client software are all free to download and use. Where cost comes in is if you want your existing POS or accounting software wired directly into eTIMS through a system-to-system integration (OSCU/VSCU) — that's usually done through a third-party integrator who charges a setup and monthly fee, which varies by vendor and isn't something KRA prices. For a duka, a salon, a mini supermarket or any other small services business, there's no reason to pay for this: eTIMS Lite does the job for free.

Why this isn't optional anymore

eTIMS started in 2023 as a VAT tool. It's now the backbone of how KRA checks income tax too, and that's what makes registering urgent rather than a someday-task.

Two changes made it unavoidable:

Expenses need an eTIMS invoice to count. Since the Finance Act, 2023 and the Electronic Tax Invoice Regulations, 2024, an expense that isn't backed by an eTIMS- or TIMS-generated invoice can't be deducted when working out your taxable income — with the limited exemptions above (KPMG Kenya, eTIMS and the Shift to Data-Driven Income and Expense Validation). If your supplier — a wholesaler, a landlord, a contractor — isn't on eTIMS, their invoice can get your own expense claim thrown out, not theirs.

From 1 January 2026, iTax validates your return against eTIMS data at the point you file. KRA now cross-checks declared income and expenses in both individual and company tax returns against eTIMS invoice records, withholding tax data and customs import records. Declared income below what eTIMS and withholding records show can be treated as understated; expenses above what eTIMS purchase data supports can be disallowed outright (KPMG Kenya, as above).

A Tax Compliance Certificate now depends on it too. A KRA public notice dated 24 October 2025 made eTIMS/TIMS registration a condition for getting a Tax Compliance Certificate, alongside filing and paying on time (KRA: TCC Enhancements notice). No TCC means no tender applications, no clean bank reference, no renewing certain licences.

Miss registration altogether, and the Tax Procedures Act sets the penalty at twice the tax due on the transactions you failed to invoice properly.

To list the business expenses you'll need eTIMS invoices for, our M-Pesa statement analyzer builds an eTIMS checklist from your M-Pesa statement.

What to watch out for

• Fake "eTIMS registration agents." Registration is free and takes minutes on eCitizen or *222#. Anyone charging you a fee to "register" you on eTIMS Lite is taking you for a ride — walk away.
• The wrong buyer PIN kills the invoice's value. An invoice with a missing or mistyped buyer PIN may not count as valid for the buyer's expense claim, even though it exists in the system. Double-check the PIN before you submit, every time.
• Don't assume your supplier is compliant. If you're buying stock from an informal supplier who isn't on eTIMS, that purchase may not be deductible for you later. Ask upfront, or use buyer-initiated invoicing for suppliers under the KES 5 million threshold.
• Credit notes follow the original invoice's channel. If you issued an invoice through eTIMS Client, the matching credit note has to go through the same channel — you can't raise it through the Online Portal instead.
• Keep your iTax phone number current. OTPs for both registration and password resets go to the mobile number KRA has on file. An old SIM card you've lost access to will lock you out at the worst moment.

Frequently asked questions

Is eTIMS free to use?

Yes. eTIMS Lite (web, USSD and the mobile app), the Online Portal and the standard eTIMS Client software are all provided by KRA at no charge. You'd only pay something if you hired a third-party integrator to connect your own POS or accounting system directly (OSCU/VSCU).

What happens if I don't register for eTIMS?

Two things hit you. The seller faces a penalty of twice the tax due on sales not properly invoiced through eTIMS. The buyer on the other end of your sale can't deduct that purchase as a business expense, which usually means they'll simply stop buying from you. From October 2025, not being eTIMS-compliant can also block you from getting a Tax Compliance Certificate.

Can I use eTIMS without a smartphone?

Yes. Dial *222# from the phone line registered to your KRA PIN and you can register and generate invoices through the USSD menu — no internet or app needed. This is the option KRA built specifically for traders without smartphones or reliable data.

Do I need eTIMS if my business isn't VAT-registered?

Yes. eTIMS applies to every person carrying on business in Kenya, VAT-registered or not — it's no longer only a VAT tool. Non-VAT businesses typically use eTIMS Lite rather than the full Online Portal or Client software.

What if my turnover is below KES 5 million a year?

You still need to be eTIMS-registered, but you don't have to raise invoices yourself. Your buyer can generate the invoice on your behalf through Buyer-Initiated Invoicing via eCitizen, and you simply approve or reject it — within 30 days — through eCitizen or *222#.

What's the difference between eTIMS and the old TIMS or ETR?

ETRs (Electronic Tax Registers) were standalone hardware boxes used mainly for VAT. TIMS was the system that followed. eTIMS is fully software-based — no dedicated device required — and works on phones, laptops and existing POS systems, which is why KRA has been able to extend it to every business, not just large VAT-registered ones.