Tax Home Kenya Limited Logo

Tax Home Kenya Limited

SIMPLIFYING YOUR TAX JOURNEY

← Back to Blog

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 can manage their tax compliance, especially in light of the ongoing transition to eTIMS.

🔍 What Has Changed?

KRA has now enabled a filing pathway that allows:

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

This is accessible under:

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

⚖️ Relief for Businesses

This update provides short-term relief, especially 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 are not locked out of compliance

✔️ Transitional gaps are addressed

⚠️ But Here's the Caution

While this may seem like a flexible alternative, it is important to understand:

👉 This is likely a transitional process — not a permanent replacement for eTIMS.

👉 KRA's long-term direction remains fully digital and traceable invoicing.

📂 Additional Compliance Requirements for Non-eTIMS Invoices

Businesses opting for this route must now:

  • 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 matching between uploaded data and physical documentation
  • 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 trigger increased KRA scrutiny

❗ Risky if documentation is incomplete or inconsistent

Using non-eTIMS invoices may expose businesses to:

  • Increased scrutiny during audits
  • Higher chances of invoice disallowance
  • Compliance risks if records are inconsistent

📊 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

✔️ Critical for input VAT claims and audit trails

✔️ A system that eliminates manual uploads and duplication of work

Delaying adoption may lead to:

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

💡 Key Takeaway

👉 The non-eTIMS option may seem easier at first glance, but in reality, it introduces a more tedious compliance burden.

👉 Onboarding to eTIMS is ultimately simpler, safer, and more sustainable.

🧠 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 this as a grace period to fully align with KRA's digital tax ecosystem.


Tax Home Kenya Limited – Simplifying your tax journey 💼✨

Get Professional Support

Need help navigating the eTIMS transition or filing with non-eTIMS invoices? We're here to help.

KRA Updates eTIMS Non-eTIMS Invoices Tax Compliance iTax Kenya Tax Home Kenya Limited