KRA eTIMS at the Till: What a Kenyan Duka, Chemist or Mini-Mart Must Do in 2026
eTIMS for small shops in Kenya is now a till job, not a year-end chore: every sale must be invoiced through a KRA system. KRA’s public notice of 8 June 2026 ended the last allowance, so all 2026 income and expenses need valid electronic tax invoices behind them.
Most eTIMS guides list the options but skip the question a shopkeeper asks: which one works at a busy counter? This article matches each type of shop to an eTIMS route, sets out the 2026 changes, and lists what to ask a POS vendor.
Who must issue eTIMS invoices
Every person doing business in Kenya must issue eTIMS invoices, VAT-registered or not. KRA’s eTIMS FAQ names sole proprietors, partnerships, companies, Turnover Tax payers and traders in the informal sector.
The duty comes from section 23A of the Tax Procedures Act, added by the Finance Act 2023 and in force since 1 September 2023. The Tax Procedures (Electronic Tax Invoice) Regulations, 2024, gazetted as Legal Notice 64, set the daily rules.
The exclusions do not cover counter sales. They include salaries, imports, interest, airline tickets and payments taxed by final withholding tax.
Kenya’s net is wide by regional standards. Tanzania, for comparison, requires fiscal receipts from non-VAT traders only once turnover reaches TZS 11 million a year. This country-by-country summary of how e-invoicing rules differ across African countries sets Kenya beside six other markets.
Three 2026 changes that reach the counter
1. No eTIMS invoice, no deduction
KRA now checks every income tax return against eTIMS data. Its notice of 10 November 2025 started automatic validation on 1 January 2026, using eTIMS invoices, withholding tax data and customs records.
The June 2026 notice let 2025 returns include valid expenses without eTIMS invoices, subject to KRA checks. From the 2026 year of income, that allowance is gone.
The cost is direct. A mini-mart company that buys KES 500,000 of stock without eTIMS invoices cannot deduct it, so its taxable profit rises by KES 500,000.
Your tax regime decides how hard this bites. A shop on Turnover Tax pays 1.5% of gross sales on turnover between KES 1 million and KES 25 million, and claims no expenses.
For that shop, the rule matters most to its business customers. A hotel, school or clinic needs your eTIMS invoice to claim what it bought.
2. Stock records are coming into eTIMS
KRA’s notice dated 7 September 2026 instructs TIMS and eTIMS users to maintain accurate, up-to-date stock records. These cover goods bought, received, sold, transferred, returned, adjusted or otherwise disposed of.
The legal hook is regulation 4(3)(c) of the 2024 Regulations, which requires stock-in and stock-out records in the system. Regulation 4(4) lets KRA put non-VAT traders below KES 25 million on a simplified system without stock records.
KRA planned consultative forums from September 2026 and set no compliance date. The practical move now is to record every supplier delivery and run a monthly count, so your figures are ready when the module arrives.
3. Outages and the 24-hour rule
eTIMS is not always available. KRA scheduled a 20-hour eTIMS and TIMS maintenance window in July 2026, which Tech-ish reported overran into the weekend.
The 2024 Regulations require you to tell KRA in writing within 24 hours when your system fails, and to record sales by other prescribed means. eTIMS Client and VSCU keep invoicing offline and send later, while the online portal and OSCU need a live connection.
What non-compliance costs
Breaking the 2024 Regulations is an offence carrying the penalty in section 86 of the Tax Procedures Act. EY’s tax alert on the Regulations puts that penalty at twice the tax due.
A mobile money message does not protect you. It proves payment, but it carries no QR code, item code or seller PIN, so each sale still needs its eTIMS invoice.
Which eTIMS route fits your shop
| Your shop | eTIMS route | Cost from KRA | Works offline? | Watch for |
|---|---|---|---|---|
| Non-VAT kiosk or duka, mostly walk-in buyers | eTIMS Lite: web on eCitizen, USSD *222#, or the “eTIMS Non VAT” app | Free | USSD needs no internet | Each invoice is keyed in by hand |
| Chemist, agrovet or mini-mart with a counter PC and no POS | eTIMS Client for Windows | Free | Yes, sends when back online | One device per PIN; Windows 10, 2 GB RAM, 20 GB storage |
| Shop already running POS or stock software | OSCU or VSCU through an approved integrator, or self-integration | Free from KRA; integrators charge | VSCU yes, OSCU no | Vendor must be on KRA’s integrator list |
| Services only, such as a barber or tailor | Online portal | Free | No | Services only, up to 10 invoices a month |
| Any shop buying from small suppliers without eTIMS | Buyer-initiated invoicing on eCitizen, for sellers up to KES 5 million turnover | Free | No | You issue the invoice on the seller’s behalf |
eTIMS Lite suits a duka whose buyers rarely ask for an invoice. At a queue, keying each sale on a phone becomes the bottleneck, which pushes busy shops to eTIMS Client or an integrated till.
Goods sellers need the Windows version. KRA’s 2024 taxpayer guidelines limit the Android eTIMS Client to service businesses, with no stock management.
Set up eTIMS in seven steps
- Check your iTax profile. Your PIN must be active and your phone number current, because the sign-up code arrives by SMS.
- Choose your route from the table above, based on how your counter works today.
- Sign up on KRA’s eTIMS portal with your PIN and the SMS code. Open Service Request, choose eTIMS, select your solution and attach your documents; KRA’s FAQ says approval is no longer needed.
- For eTIMS Client, enter the serial number of the computer it will run on. Moving it to a new machine later means a visit to a KRA office.
- Build your item list with the KRA item code, unit of measure and tax rate for each product. Use the same names as your shelves and stock book.
- Issue a test invoice and verify it. Scan the QR code or use the invoice number checker on iTax; the code only verifies once the invoice reaches KRA.
- Train every cashier on returns and outages. A return needs a credit note quoting the original invoice number, and an outage needs the 24-hour notice.
What to ask a POS vendor before you pay
A vendor that says “eTIMS-ready” must prove it on KRA’s own list. KRA’s list of approved eTIMS third-party integrators, dated 26 January 2026, names 53 firms with their PIN, product name, version and solution type.
- Is your product, at this version, on KRA’s integrator list? Match the name and version yourself.
- Is it OSCU or VSCU? OSCU needs internet for every invoice; VSCU keeps working through an outage.
- Does a return at the till create a credit note linked to the original invoice?
- Do purchases add stock and sales remove it in the same system that sends invoices to KRA?
- Does the receipt print the QR code, your PIN, and the buyer’s PIN when the buyer gives one?
- What are the one-time and monthly integration costs, and who pays when KRA changes its specifications?
- Can you export every invoice to match against your iTax records each month?
A till that is not on KRA’s list still earns its place, but it runs beside eTIMS rather than through it. ArmPOS is one example of point of sale and stock software for Kenyan dukas and chemists. It tracks stock by branch and batch, and on paid plans takes M-Pesa at the till through the shop’s own MarzPay account.
ArmPOS states in its own e-invoicing guide that it does not connect to eTIMS. A shop using it issues invoices through a KRA route such as eTIMS Client, and matches the totals each evening.
That evening match matters with any setup. Compare eTIMS invoice total, till sales total, and cash plus mobile money received. A gap found the same day takes minutes to fix; one found at filing time can cost a deduction or a penalty.
About the author
Rio Akram Miiro is the founder of ArmGenius, the company behind ArmPOS, a point of sale and inventory system for African small businesses. He is based in Kampala, Uganda.
Comment