eTIMS Penalties in Kenya: What the Law Actually Charges

What the Law Actually Says

The eTIMS penalty sits in two places. First, the Tax Procedures (Electronic Tax Invoice) Regulations, Legal Notice 64 of 2024 make it an offence to fail e-invoicing compliance or to tamper with the system, and refer breaches to TPA s.86 - they do not set a separate KES 1 million or 10% figure. Under s.86, as amended by the Finance Act 2026 (in force 1 July 2026), failing to issue an electronic tax invoice, file a return electronically or pay tax electronically attracts the higher of 5% of the tax due, KES 100,000 for companies, or KES 10,000 for individuals, applied after a written notice and a check that the failure was not outside the taxpayer's control.

Second, the integration requirement sits in TPA s.59A. A business with turnover above KES 5 million that the Commissioner has notified to integrate its data-management system with KRA's electronic system, and that fails to comply, is liable - on conviction - to a penalty of not exceeding KES 100,000 for every month or part thereof that the failure continues.

The KES 50,000-per-month figure that circulates in business guidance is not a standalone statutory penalty. Do not budget on KES 50,000 a month: verified eTIMS invoice failures are each exposed to the TPA s.86 penalty (up to KES 100,000 for companies or 5% of the tax due), which is usually far larger. The strongest protection is issuing every invoice through eTIMS, checking the compliance dashboard, and keeping your device or integration live at all times.

Where Figures Like “KES 500,000 Per Month” Come From

A circulating figure frames the eTIMS penalty as a flat KES 50,000 per month. KRA's own guidance and the Act do not set a universal KES 50,000 monthly fine, and the KES 500,000 a month figure that appears in older articles is also not in the enacted law: that amount was proposed in the pre-passage Tax Procedures (Amendment) (No. 2) Bill 2024, but the enacted section fixates a penalty of not exceeding KES 100,000 per month. Similarly, “the higher of KES 1 million or 10% of the tax” echoes a Finance Bill 2023 proposal that was replaced before enactment. Budget against the enacted figures: for invoicing failures, up to KES 100,000 (companies) or 5% of tax due; for integration failure after notice, up to KES 100,000 per month.

What Triggers the Penalties?

• Not registered for eTIMS at all
• Registered but not issuing eTIMS invoices
• Issuing invoices outside the eTIMS system
• A non-compliant invoice (missing mandatory fields, wrong PIN, no valid control number)
• System integration failure after a written KRA notice (up to KES 100,000/month, TPA s.59A(5), turnover above KES 5 million)
• Failing to correct an integration issue once flagged by KRA

How to Check Your Compliance Status

1. 1.Log into the KRA eTIMS portal.
2. 2.Check your compliance dashboard for any flags.
3. 3.Verify that your eTIMS device or app is actively transmitting invoices.
4. 4.Ensure your QR codes scan correctly using the KRA verification app.
5. 5.Confirm your ERP or POS system is properly integrated (if applicable).

How to Avoid the Penalty

• Register for eTIMS if you have not already - choose between the mobile app, web portal, or ERP integration.
• Issue every invoice through eTIMS, even for cash sales and B2C transactions.
• Keep your eTIMS device or app active at all times.
• Test your QR codes monthly with the KRA verification app.
• If you use an ERP, ensure your integration is certified and maintained.
• File your VAT returns on time - the eTIMS penalty can stack on top of late-filing penalties.

Related Resources

• eTIMS Onboarding Guide 2026 - Step-by-step registration guide for all three eTIMS solution types
• eTIMS Compliant Invoicing Guide - Mandatory fields, QR codes, B2B vs B2C rules, and verification
• KRA VAT Penalties Reference - Complete penalty table including eTIMS penalties