The Kenya Revenue Authority has tightened tax compliance requirements, making it mandatory for taxpayers to validate expenses through the Electronic Tax Invoice Management System (eTIMS).
As of January 2026, the iTax system automatically matches declared expenses with eTIMS records, meaning only verified electronic invoices will be accepted during tax filing.
Here is a clear step-by-step guide to help you validate your expenses correctly and avoid penalties.
Step 1: Register and Onboard on eTIMS
The first step is to ensure you are registered on the eTIMS platform.
- Visit the official eTIMS portal
- Sign up using your KRA PIN
- Complete OTP verification
- Select the appropriate eTIMS solution (web, mobile, or integrated system)
- Upload required documents such as your National ID and commitment form
Once registered, you can begin issuing and receiving compliant electronic invoices.
Step 2: Ensure Supplier Compliance
For any expense to be allowable, it must come from a supplier who is also compliant with eTIMS.
- Always request an electronic tax invoice
- Confirm the invoice has a QR code
- Ensure it includes a valid eTIMS invoice/control number
Without these features, the expense may not qualify for tax deduction.
Step 3: Verify Invoices Before Filing
Before declaring any expenses, you must confirm that the invoices are valid and recognized by KRA.
You can do this in two ways:
- Scan the QR code using the eTIMS mobile app
- Use the “Invoice Number Checker” on the iTax portal
After verification, ensure the system confirms that:
- The invoice is valid
- It has been successfully transmitted to KRA systems
Step 4: Confirm Your Expense Records
Before filing returns, cross-check your expense records.
- Compare your records with eTIMS/TIMS schedules
- Request annual income and expense schedules from KRA if necessary
- Ensure all your purchases are captured in the system
This step helps eliminate discrepancies that may lead to rejected claims.
Step 5: File Returns via iTax
When filing your tax returns:
- Log into the iTax platform
- Declare your income and expenses
- The system will automatically validate expenses against eTIMS data
Ensure all declared expenses match the electronic invoices recorded, otherwise they may be disallowed.
Key Things to Note
- Only eTIMS invoices are valid: Expenses without a valid QR code or invoice number may be rejected
- Self-supply invoices are excluded: These cannot be claimed as expenses
- Failed verification: If a QR code fails, use the invoice checker on iTax
- Auto-validation is active: iTax now automatically flags mismatched or invalid expenses
Why This Matters
The integration of eTIMS with iTax marks a major shift in tax administration in Kenya, aimed at improving transparency and reducing tax evasion.
For taxpayers, this means stricter compliance but also a more streamlined and automated filing proce
