BUSINESS

KRA, National Treasury Link eTIMS to IFMIS in New Move Affecting Businesses

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KRA's Times Tower Headquarters.
KRA's Times Tower Headquarters. [Photo/ Courtesy]
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The Kenya Revenue Authority (KRA) and the National Treasury have completed the integration of the Electronic Tax Invoice Management System (eTIMS) with the Integrated Financial Management Information System (IFMIS). This move will change how businesses submit invoices when seeking payment from government institutions.

The new arrangement links tax invoicing directly to the government’s financial management and payment processes. Businesses that supply goods or services to government entities must now ensure their invoices comply with eTIMS requirements before submitting payment requests through IFMIS.

KRA announced the development in a public notice issued on Monday, August 31, 2026, saying the integration was part of efforts under the government’s Digital Transformation Agenda.

The authority said connecting the two systems would help improve the way government transactions are recorded, checked and processed.

“In collaboration with the National Treasury, we have successfully implemented the integration of eTIMS with IFMIS,” KRA said.

Under the new arrangement, a supplier must first generate a valid eTIMS invoice before presenting an invoice for payment through IFMIS. The information on the two records must also correspond.

This places greater responsibility on businesses to ensure that invoices are prepared accurately. Details entered into eTIMS will need to agree with those submitted when a supplier seeks payment from a government institution.

Businesses will also be required to maintain proper tax records and keep their tax compliance status up to date.

How the integration will affect payments

The connection between eTIMS and IFMIS is expected to reduce the need for some manual checks by allowing invoice information to be validated electronically.

KRA said the system “will also support automated validation of tax invoices and more seamless financial processes across Government entities.”

For suppliers, this means an invoice is no longer simply a document submitted to a government office before waiting for payment. Its tax information will form part of an electronic process linking the supplier, KRA and the government payment system.

The change could also help government agencies identify discrepancies in invoices before payments are processed. For KRA, linking the systems provides a clearer electronic trail of transactions between government institutions and the businesses supplying them.

The development is part of Kenya’s broader move towards digital tax administration and electronic management of public finances. KRA has in recent years expanded eTIMS as it seeks to bring more business transactions into an electronic tax reporting system.

The authority provides several eTIMS options, allowing taxpayers to select a solution depending on the nature of their businesses and invoicing needs.

For companies that frequently win government tenders or supply public institutions, the latest development means tax compliance will need to be considered alongside procurement and payment procedures.

KRA and the National Treasury said they will conduct sensitisation programmes and provide technical support to stakeholders during the transition.

Suppliers therefore face a relatively simple requirement, but one that could have a major effect on their dealings with government: generate the correct eTIMS invoice, make sure the information matches the claim submitted through IFMIS, and keep tax records and compliance details in order.

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