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eTIMS Compliance Checklist Kenya 2026: Daily, Monthly & Annual Obligations

Smart VAT Kenya — KRA-registered VAT agents — Updated July 2026

Why This Checklist Matters

eTIMS compliance is not optional for VAT-registered businesses in Kenya. KRA's 2026 enforcement drive has led to penalties against thousands of businesses for eTIMS violations — from KES 50,000 for late onboarding to KES 100,000 for issuing non-compliant invoices. This checklist covers every obligation you have: daily, monthly, quarterly, and annual. Run through it regularly to stay compliant and avoid costly penalties.

Daily eTIMS Obligations

These are tasks you or your staff should complete every business day.

Issue eTIMS-compliant invoices for every sale

Every sale to every customer must be recorded through eTIMS. No exceptions. Manual invoices are only permitted during verified system downtime, and must be entered into eTIMS within 24 hours of the system being restored.

Verify each invoice is accepted by KRA

After issuing an invoice, check that it appears in 'Issued Invoices' with a 'Success' status. A rejected invoice means the sale is not recorded with KRA even though you issued a document. Fix and reissue before end of day.

Reconcile daily sales tally against eTIMS report

At end of day, run a quick sales summary from eTIMS and compare it to your POS or manual sales record. Any discrepancy means an invoice was not transmitted correctly or a sale was missed.

Check eTIMS device status at start of day

Before you start issuing invoices, confirm your eTIMS control unit or portal is connected and functioning. A device that failed overnight may need a reset or KRA support call.

Record any manual transactions with reason

If you had to issue any manual invoices (system downtime, power failure, etc.), log each one with the reason, time, and invoice details. These must be entered into eTIMS as soon as the system is available.

Daily reconciliation is your best defence against audit penalties

KRA audit teams compare your eTIMS invoice register against your bank deposits and VAT returns. A business that reconciles daily catches discrepancies immediately. A business that reconciles monthly (or never) discovers problems only when KRA flags them — and by then, penalties apply.

Monthly eTIMS Compliance Requirements

These tasks align with your monthly VAT return cycle and must be completed by the 20th of each month.

Run complete eTIMS sales report for the month

Generate a monthly sales summary from eTIMS showing total invoices issued, total sales value, total VAT, and breakdown by rate. This report is the source data for your VAT return.

Reconcile eTIMS sales figures against VAT return

The sales figures on your VAT return must exactly match your eTIMS sales report. If there is a discrepancy, investigate before filing. Common causes: missing invoices, rejected invoices, or sales entered outside eTIMS.

Reconcile physical stock with eTIMS stock register

eTIMS tracks your inventory through invoices issued. At least once a month, physically count your stock and compare it to the eTIMS stock register. Investigate and correct any discrepancies.

Verify invoice sequence is continuous with no gaps

Run an invoice sequence report. Any gaps in serial numbers must be explained (cancelled invoices, rejected invoices, or skipped numbers). Unexplained gaps suggest unreported sales and trigger KRA attention.

Process any credit notes or debit notes

If you issued refunds or adjustments during the month, ensure corresponding credit notes are created in eTIMS. Credit notes reduce your output VAT for the period.

Back up eTIMS data and reports

Export and save your monthly eTIMS reports. KRA requires records to be retained for 5 years. Cloud backups are recommended in addition to local storage.

Quarterly and Annual Checks

Less frequent but equally important checks to maintain long-term compliance.

Quarterly: Full eTIMS systems audit

Review all eTIMS processes: invoice issuance, stock reconciliation, device logs, user access controls. Identify any recurring issues and address them before they become KRA audit findings.

Quarterly: User access review

If multiple staff have access to eTIMS, review who has login credentials. Revoke access for former employees. Change passwords quarterly. Unauthorised access to eTIMS is a security and compliance risk.

Annual: eTIMS device inspection and maintenance

Schedule a full inspection of your eTIMS control unit (ESD). Check for physical damage, firmware updates, and battery condition. Replace any device showing signs of wear to prevent unexpected failures.

Annual: KRA eTIMS compliance self-assessment

Run a self-assessment against KRA's eTIMS compliance checklist. Areas to check: invoice continuity, stock accuracy, timely data submission, device logs, staff training, and record retention.

Annual: Staff training update

eTIMS processes and KRA requirements change. Ensure your invoicing and finance staff are up to date with the latest eTIMS requirements. An untrained employee is the most common cause of compliance failures.

eTIMS Device Maintenance

Your eTIMS control unit (ESD) or software is the backbone of your compliance. Neglecting it is the fastest way to get into KRA trouble.

Keep the device powered and connected

The ESD device must remain powered on during business hours. If you use the eTIMS portal, ensure a stable internet connection at all times. Intermittent connectivity causes invoice transmission failures.

Install firmware and software updates promptly

KRA periodically releases updates to the eTIMS system. When an update is available, install it as soon as possible. Running outdated firmware can cause compatibility issues and invoice rejections.

Maintain a device fault log

Record every instance of device malfunction, error message, or connectivity issue. Include date, time, nature of fault, and how it was resolved. This log is your evidence if KRA questions compliance during a fault period.

Have a backup device or alternative access plan

If your primary ESD device fails, you should have a backup plan. This could be a second device, access to the eTIMS web portal, or an arrangement with your VAT agent to issue invoices on your behalf.

Contact KRA immediately for hardware faults

If your ESD device is physically damaged or stops working entirely, contact KRA eTIMS support at etims@kra.go.ke or call 020 4 999 999. Do not continue issuing manual invoices for days without addressing the device issue.

Audit Readiness: What KRA Checks

If KRA selects your business for an eTIMS audit, here is exactly what they examine. Use this to test your own readiness.

What KRA ExaminesWhat They Look For
Invoice continuityGaps in serial numbers, missing invoices, invoices issued out of sequence
Sales vs eTIMS reconciliationDiscrepancies between eTIMS sales and bank deposits, or eTIMS sales and VAT return figures
Stock register accuracyPhysical stock counts matching eTIMS stock records. Large discrepancies suggest off-book sales
Device fault logsEvidence that device faults were documented and reported to KRA promptly
Manual invoice recordsAny manual invoices must have a valid reason and must be entered into eTIMS within 24 hours of system restoration
Credit and debit notesAll adjustments must be supported by original invoice references and valid reasons
User access logsUnauthorised users, former employees with active access, or suspicious login patterns

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Frequently Asked Questions

What happens if I don't comply with eTIMS requirements?
Non-compliance with eTIMS can attract penalties of up to KES 100,000 per instance. KRA has been aggressively enforcing eTIMS compliance in 2026. Specific penalties include: KES 50,000 per month for failure to onboard within 30 days of VAT registration, KES 100,000 for issuing non-compliant invoices, and denial of input VAT claims for purchases that are not eTIMS-compliant.
Do I need to submit data to eTIMS every day?
eTIMS transmits invoice data to KRA in real time as invoices are generated. There is no separate 'daily submission' step — every invoice you issue through eTIMS is automatically sent to KRA. However, you should reconcile your eTIMS data daily to ensure all invoices were transmitted successfully and no rejections occurred.
How do I reconcile my stock in eTIMS?
eTIMS requires you to maintain a stock register that matches your physical inventory. To reconcile: (1) Run a stock report from eTIMS. (2) Physically count your inventory. (3) Investigate and correct any discrepancies. (4) Document the reconciliation with date and sign-off. Stock discrepancies are a red flag for KRA audit teams and can trigger a full investigation.
Can I use a third-party POS system with eTIMS?
Yes, but the system must be KRA-approved and integrated with eTIMS. Many POS providers in Kenya offer eTIMS integration. Before purchasing a POS system, verify with the provider that it is eTIMS-compliant and capable of transmitting invoice data to KRA in real time. Using a non-integrated POS alongside eTIMS creates a reconciliation nightmare.
What records must I keep for eTIMS compliance?
KRA requires you to maintain: (1) A register of all e-invoices issued (sequential, unbroken series). (2) A register of all credit and debit notes. (3) A stock register reconciled monthly. (4) eTIMS device maintenance logs. (5) Records of any manual invoices issued during system downtime. (6) Monthly eTIMS compliance reports. These records must be retained for at least 5 years.

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