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KRA Introduces Non-eTIMS Invoice Option: Relief or Risk?

The Kenya Revenue Authority (KRA) has introduced a notable update to the iTax system — taxpayers can now file returns using non-eTIMS invoices under the Manual & Non-eTIMS/TIMS option.

This development marks a significant shift in how businesses manage tax compliance, especially during the transition to eTIMS.

🔍 What Has Changed?

KRA has introduced a filing pathway that allows:

  • Manual invoices (non-eTIMS generated)
  • Legacy TIMS invoices
  • Adjustments through accounting and accrual entries

📍 How to Access:

Returns → File Return → Income Tax Return Adjustments → Manual & Non-eTIMS/TIMS

⚖️ Relief for Businesses

This update provides short-term relief, particularly for:

  • Businesses still onboarding to eTIMS
  • Taxpayers facing system or integration challenges
  • SMEs with limited digital infrastructure

It ensures that:

  • Filing deadlines can still be met
  • Businesses remain compliant
  • Transitional gaps are addressed

⚠️ But Here's the Caution

👉 This is likely a transitional process, not a permanent replacement.

👉 KRA's direction remains fully digital and traceable invoicing through eTIMS.

📂 Additional Compliance Requirements

Businesses opting for non-eTIMS invoices must:

  • Prepare invoice data in a prescribed Excel spreadsheet format
  • Upload the Excel file into the iTax system
  • Upload supporting physical documents (scanned invoices, receipts, etc.)
  • Ensure accurate reconciliation between uploaded data and documents
  • Maintain proper records for audit purposes

⚠️ Why This Is a Concern

This process is:

❗ Tedious and time-consuming

❗ Prone to human error during data entry

❗ Likely to attract increased KRA scrutiny

❗ Risky if documentation is incomplete or inconsistent

Additionally, businesses may face:

  • Increased scrutiny during audits
  • Higher chances of invoice disallowance
  • Overall compliance risks

📊 Why You Should Still Embrace eTIMS

Despite this temporary flexibility, eTIMS remains:

✔️ The official standard for invoice validation

✔️ A tool for real-time tax compliance

✔️ Essential for input VAT claims and audit trails

✔️ Efficient — eliminating manual uploads and duplication of work

Delaying adoption may lead to:

  • Future penalties
  • System shocks when enforcement tightens
  • Operational inefficiencies

🧠 Expert Advice from Tax Home Kenya Limited

At Tax Home Kenya Limited, we recommend:

  • Use the non-eTIMS option only where necessary
  • Begin or complete your eTIMS onboarding immediately
  • Ensure proper documentation and reconciliation
  • Seek professional guidance to avoid compliance gaps

📣 Final Word

This update is a window — not a destination.

Businesses should treat it as a grace period to fully align with KRA's digital tax ecosystem.


Tax Home Kenya Limited – Simplifying your tax journey. 💼✨

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KRA Updates eTIMS Tax Compliance Non-eTIMS Invoices iTax Kenya