Businesses supplying goods and services to government entities will now be required to generate valid electronic tax invoices before submitting claims for payment following the integration of the Kenya Revenue Authority's eTIMS platform with the government's financial management system.
KRA said that it had successfully integrated the Electronic Tax Invoice Management System (eTIMS) with the Integrated Financial Management Information System (IFMIS), tightening verification of invoices submitted by government suppliers.
The tax authority, working with the National Treasury, said the integration will allow tax invoices to be automatically validated as part of the government payment process.
"Suppliers must generate valid eTIMS invoices for all supplies before submission for payment processing through IFMIS," KRA said in a public notice dated August 31, 2026.
The development means businesses dealing with ministries, departments, agencies and other entities processing transactions through IFMIS will need to ensure their invoices are properly generated and recorded in eTIMS before seeking payment.
KRA said invoice details submitted to government entities must also exactly match information captured in eTIMS.
"The details of invoices submitted to Government entities must correspond precisely with the invoices generated and recorded in eTIMS," the authority said.
The integration is expected to strengthen scrutiny of government transactions by linking procurement payments to tax records, making it easier to identify invoices that are invalid, inconsistent or missing from KRA's electronic invoicing platform.
KRA described the move as part of the government's wider digital transformation programme, saying the system would improve transparency and accountability while making financial processes across public institutions more efficient.
It is also expected to bolster tax compliance by ensuring businesses supplying the government have proper electronic tax records before their invoices move through the payment system.
"The integration will promote greater transparency and accountability in Government transactions, support efficient and seamless financial processes across Government entities and enhance tax compliance through automated validation of tax invoices," KRA said.
Suppliers have also been urged to regularly check their tax compliance status and ensure that information held by KRA is accurate and up to date.
The authority did not indicate in the notice whether invoices that fail the automated validation process would immediately be rejected by IFMIS. It, however, made clear that valid eTIMS invoices are required before suppliers submit claims for payment.
The requirement could have significant implications for companies and small businesses that depend on government contracts, particularly suppliers that have yet to fully adopt electronic invoicing.
KRA said businesses experiencing difficulties with eTIMS onboarding or generating invoices can seek assistance through its existing support channels.
The authority and the National Treasury said they would continue sensitizing affected suppliers and providing technical guidance during the transition to the integrated system.
"KRA and the National Treasury remain committed to supporting all stakeholders throughout the implementation and transition period," the notice said.
KRA introduced electronic tax invoicing as part of efforts to improve visibility of business transactions and strengthen tax administration. Linking the platform directly with IFMIS takes the system a step further by embedding tax invoice verification into government financial processes.
Follow our social media pages for breaking news updates, in-depth stories and videos.
news@nairobilens.ke
