Electronic invoicing and e-Reporting in Kenya

Mandate

Since November 30, 2022, all VAT-registered taxpayers are required to comply with the obligation to issue electronic invoices through TIMS. This measure is mandatory for all businesses subject to VAT in Kenya.

Invoice Format

Electronic invoices in Kenya must be generated in JSON (JavaScript Object Notation) format, a widely used standard for transmitting structured data.

Using JSON allows invoices to be processed quickly and efficiently within the Tax Invoice Management System (TIMS), ensuring correct data interpretation by the Kenya Revenue Authority (KRA).

Electronic Signature

Applying an electronic signature to invoices is mandatory to ensure the authenticity and integrity of the document.
To meet this requirement, invoices generated through TIMS must be validated and digitally signed by a Control Unit, a device responsible for:

• Electronically signing each invoice at the time of issuance.
• Encrypting the information to guarantee its security and confidentiality.
• Transmitting the invoice to the KRA in real-time or as connectivity allows.

Businesses must ensure that their invoicing solutions include an electronic signature module compatible with KRA regulations to avoid compliance issues.

Archiving 

Businesses must retain electronic invoices for a period of 5 years, in accordance with the regulations set by the KRA. It is essential that invoices are securely archived and available for review in case of audits or tax inspections.

Fiscal Control

Electronic invoices must be sent to the KRA through a device called the Control Unit, which performs the following functions:

Validation of invoice data at the time of issuance, generation of a unique invoice number for each invoice or receipt, transmission of the electronic invoice to the KRA in real-time or nearly real-time and generation of credit and debit notes to correct or amend an invoice.