New Rule Requires eTIMS Invoices for All Government Transactions

The Kenya Revenue Authority (KRA) has fully integrated its Electronic Tax Invoice Management System (eTIMS) with the government’s financial platform, IFMIS. This means all suppliers seeking payment from government entities must now generate valid eTIMS invoices before submitting claims.

Automated Validation and Enhanced Efficiency

The integration enables automated tax invoice validation across government institutions, streamlining financial processes. According to KRA, this milestone supports the government’s digital transformation agenda by ensuring greater transparency and accountability in public spending.

Suppliers are directed to verify their tax compliance status regularly and keep records updated. The KRA contact center remains available for technical support and queries during this transition.

Court Challenge Looms Over Deactivation Policy

The new rule comes as KRA’s practice of deactivating eTIMS access over unpaid penalties faces legal scrutiny. Consumer lobby group COFEK filed a petition arguing that such deactivations can lock out businesses even when all principal tax has been paid or none is owed.

COFEK contends that the mandatory nature of eTIMS creates a contradiction when access is withdrawn as an enforcement measure, potentially forcing businesses to halt operations or trade without compliant invoices—risking further penalties for the very non-compliance the deactivation aims to address.

The petition also raises concerns about customers who may be unable to obtain valid invoices despite bearing no responsibility for their supplier’s tax situation.

Impact on Public Procurement and Private Trade

With eTIMS now serving as a gateway to government payments, suppliers deactivated under the disputed practice face losing access to both public-sector contracts and private trade—pending the court’s decision. The case highlights growing pains in Kenya’s digital tax transformation as businesses navigate new compliance requirements while awaiting legal clarity.