eTIMS Compliance Checklist for Kenyan SMEs (2026)
eTIMS compliance isn't just about registering — it's about actively issuing KRA-compliant receipts for every transaction. Use this checklist to confirm your business is fully covered: from initial setup through your daily invoicing process.
Phase 1: Before You Register
Get these in order first
KRA PIN is active. Log into itax.kra.go.ke and confirm your PIN status is "Active." If inactive, reactivate before proceeding.
Business name matches your KRA records. The name on your eTIMS receipts must match the name registered with KRA. Discrepancies can cause rejected submissions.
Branch ID confirmed. Most small businesses use Branch ID "00" (main branch). If you operate multiple locations, confirm your branch IDs from KRA.
Tax obligation type known. Confirm the obligations and tax treatment currently recorded for the business. Do not infer an eTIMS item code from turnover alone.
Choose your eTIMS solution. KRA eTIMS Lite (free) or a third-party solution like Risiti. Decide based on your monthly invoice volume and feature needs.
Phase 2: Registration & Setup
One-time setup steps
OSCU device initialized. Your platform has connected to KRA's API and returned a device serial number (dvcSrlNo) and communication key (cmcKey). You should see a "connected" or "registered" status.
Business name and PIN visible on receipts. Generate a test receipt and confirm your business name and KRA PIN appear correctly.
First test receipt issued. Issue a receipt for a small amount (even KES 1) to confirm the full submission flow works. Check that KRA returns an invoice number.
QR code present and scannable. Every receipt should have a QR code linking to KRA's verification portal. Scan it with your phone camera to confirm it resolves.
KRA invoice number visible on receipt. Each submitted invoice should show a KRA-assigned number. This is proof of compliance.
Phase 3: Daily Operations
Ongoing compliance habits
Issue a receipt for every transaction. This is the core requirement. No exceptions — cash, M-Pesa, bank transfer, all must have an eTIMS receipt.
Issue receipts at the time of sale. KRA expects receipts to be issued when the transaction happens, not in batch at end of week.
Check for failed submissions. If your internet drops during a transaction, confirm the receipt was submitted successfully afterward. Risiti retries automatically; eTIMS Lite requires manual check.
Use correct tax codes per item. Non-VAT items use code "D". VAT standard is "B" (16%). Don't leave tax type blank — KRA will reject the invoice.
Keep buyer names accurate. For B2B invoices where the buyer's KRA PIN is provided, ensure the name and PIN match. Mismatches cause rejections that are hard to reverse.
Phase 4: Record Keeping & Filing
Monthly and annual obligations
Monthly returns filed on iTax. eTIMS submission doesn't replace your tax returns. File your monthly VAT return (if registered) or your income tax returns via iTax as usual.
Invoice records retained for 5 years. KRA requires businesses to keep tax records for 5 years. Your eTIMS platform should hold this history — confirm your chosen solution doesn't delete old records.
Annual income tax return filed. Your eTIMS receipts feed into your annual income declaration. Ensure all revenue is captured.
Common Compliance Gaps
These are the most frequent mistakes Kenyan SMEs make after registering:
- Registered but not using the configured channel. Registration alone does not create an accepted invoice. Confirm which transactions require submission and retain the returned KRA receipt data.
- Issuing receipts offline and forgetting to sync. If you work offline, always confirm submissions went through when you reconnect.
- Wrong tax type on items. Using "A" (Exempt) when you should use "D" (Non-VAT) is a common source of rejections.
- Not issuing receipts for M-Pesa transactions. Payments received via M-Pesa still require eTIMS receipts. The payment method field on the receipt handles this — just select "Mobile Money."
Need help getting set up?
Risiti walks you through the product setup, but KRA onboarding time depends on accurate taxpayer details and a confirmed connection. Issue receipts only after submission is working and the returned receipt details are visible.