eTIMS for Freelancers in Kenya: Everything You Need to Know

Short answer: A freelancer carrying on business should check the current eTIMS rule, statutory exclusions and tax treatment that apply to the work. KRA provides simplified channels, while Risiti offers an OSCU-based operational workflow after taxpayer onboarding.

Why Freelancers Are Caught Off Guard by eTIMS

Most eTIMS communication from KRA has been aimed at registered businesses and VAT taxpayers. The old ETR (Electronic Tax Register) machines were only required for VAT-registered businesses — so freelancers earning under KES 5 million a year assumed eTIMS didn't apply to them.

Do not use the VAT registration threshold as the only eTIMS test. Check KRA's current guidance and the statutory exclusions against your taxpayer profile and transaction.

Which eTIMS Type Applies to Freelancers?

There are two main tracks for non-large businesses:

Choose based on eligibility, invoice volume, record keeping, support and the need to reuse client or item data. Confirm KRA onboarding and an accepted production receipt before relying on any setup.

What Tax Rate Goes on a Freelancer's Invoice?

This depends on whether you're VAT-registered:

• Not VAT-registered (annual revenue under KES 5M): Use tax code "D" (not VAT registered, 0% tax). Your invoice shows the full amount with no VAT added.
• VAT-registered: Apply 16% VAT (tax code "B") on taxable services, or 0% if your services are zero-rated exports.
• Freelancers on Turnover Tax (TOT): Annual revenue KES 1M-5M. You pay a flat 1.5% turnover tax. Invoices still use code "D".

The practical takeaway: most freelancers below the VAT threshold will issue receipts at 0% tax — but they still must issue them through eTIMS.

What If I Only Work with International Clients?

eTIMS still applies. Your tax obligations are based on where you are, not where your clients are. If you're a Kenyan resident receiving payment for services, you have a Kenyan tax obligation — even if the client is in the US, UK, or Europe.

That said, exports of services to foreign clients are zero-rated for VAT purposes (if you're VAT-registered). So you'd charge 0% VAT but still need to issue the invoice through eTIMS.

How to Set Up eTIMS as a Freelancer

Here's the fastest path to compliance:

1. 1. Sign up for Risiti (or KRA's eTIMS Lite).
   Risiti is designed for freelancers and SMEs — mobile-first, M-Pesa payment, minimal setup.
2. 2. Enter your KRA PIN and business name.
   Use your individual KRA PIN if you're a sole trader. Branch ID is "00" for your main location.
3. 3. Let the system initialize your OSCU device.
   This sends your details to KRA's servers and gets you a communication key. Risiti does this automatically — you just tap a button.
4. 4. Create your first receipt.
   Add your service, the client name, the amount, and select the payment method. Submit once, wait for KRA acceptance, then share the completed receipt by WhatsApp or email.

eTIMS Lite vs. Risiti for Freelancers

KRA provides free simplified eTIMS channels. Risiti publishes current App, Direct API, and Platform API pricing. Here's how to decide:

• Use eTIMS Lite if you issue fewer than 10 invoices a month, have very simple needs, and don't care about PDF invoices or client history.
• Use Risiti if you invoice regularly, want accepted receipt PDFs and records, or need a clear WhatsApp sharing workflow after KRA acceptance.

For freelancers who invoice multiple clients regularly, compare the time saved, receipt workflow and current price against KRA's free channels before choosing.

Frequently Asked Questions