KRA eTIMS Compliance for SMEs in Kenya: 2026 Complete Guide
If you're a Kenyan business and you charge VAT, you must transmit every invoice to KRA via eTIMS (Electronic Tax Invoice Management System). Penalties for non-compliance reach KES 1 million or twice the tax due. Yet many SMEs still don't know exactly how it works.
This guide explains KRA eTIMS in plain English — and how SawaPOS automates compliance with zero extra hardware.
What Is KRA eTIMS?
KRA eTIMS replaces the old ETR (Electronic Tax Register). Instead of a hardware "tax box," every invoice is signed and transmitted electronically to KRA in real time. Your receipts must show:
- eTIMS QR code
- Control Unit Invoice Number (CUIN)
- KRA digital signature
- Seller VAT number + buyer VAT number (if B2B)
Who Must Use eTIMS?
- All VAT-registered businesses (turnover > KES 5M)
- Increasingly, all businesses issuing receipts — even non-VAT-registered ones — are being onboarded onto eTIMS Lite
The simple answer: if you sell to customers in Kenya, you'll need eTIMS sooner rather than later.
OSCU vs VSCU — Which Do I Need?
OSCU — Online Sales Control Unit
For businesses with stable internet. Invoices transmit to KRA in real time. Best for restaurants, retail shops, pharmacies in Nairobi, Mombasa, and Kisumu.
VSCU — Virtual Sales Control Unit
For businesses with intermittent connectivity or high volumes (>500 invoices/day). Invoices transmit in batches.
SawaPOS supports both modes — switch in Settings.
Common eTIMS Mistakes
- Manual workarounds — typing invoice numbers by hand. Error-prone, slow, and risks audit fines.
- Buying a separate eTIMS device — unnecessary. SawaPOS includes eTIMS built in.
- Missing buyer VAT numbers — for B2B sales, capture the buyer's PIN at point of sale.
How SawaPOS Automates eTIMS
- Enable eTIMS in Settings → eTIMS Panel
- Enter your KRA PIN, branch ID, and device serial
- Every completed sale automatically transmits to KRA
- Receipts print with the QR code, CUIN, and signature
That's it. No separate device, no manual typing.
Penalties for Non-Compliance
- Late filing: KES 10,000 per month
- Issuing non-eTIMS invoices: up to KES 1 million or 2× tax due
- Failure to transmit: account flagged, potential suspension
The cost of compliance ≪ the cost of non-compliance.
FAQ
Is eTIMS the same as ETR? No — eTIMS replaced ETR in 2024. ETR was hardware-based; eTIMS is software-based.
Do I need to buy KRA hardware? No — SawaPOS handles eTIMS in software. No hardware required.
Can I issue refunds via eTIMS? Yes — SawaPOS generates credit notes that transmit to KRA automatically.
Get Compliant the Easy Way
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Also read: Best POS in Kenya (M-Pesa + eTIMS) · Cloud POS for African SMEs · Free POS system guide