How to invoice in Kenya
A compliant Kenyan tax invoice must be generated and transmitted through the KRA's eTIMS system, which stamps it with a unique eTIMS invoice number, a control code and a QR code. It has to show the seller's KRA PIN, the issue date and time, itemised supplies, and VAT (16%) calculated separately; include the buyer's KRA PIN whenever they need the invoice to claim an expense deduction or input VAT. Only eTIMS-validated invoices are deductible for income tax.
| Kenya at a glance | Detail |
|---|---|
| Currency | KES (Ksh) |
| Standard VAT | 16% |
| Tax ID | KRA PIN |
| Paper size | A4 |
| Typical terms | Net 30 |
| E-invoicing | Mandatory — live |
Tax ID format: An 11-character KRA PIN — one letter, nine digits and a check letter; businesses (non-individuals) start with 'P', e.g. P051234567X..
What Kenyan invoices must include
- The word “Invoice” and a unique, sequential invoice number
- The issue date (and the supply date if it differs)
- Your business name, address and KRA PIN
- The client's name and address (and their KRA PIN for reverse-charge or intra-EU supplies)
- A clear description and quantity for each line
- The net amount per VAT rate, the rate(s) applied and the VAT amount
- The total payable, in KES
- Payment terms, the due date and how to pay (bank name, IBAN/account)
- eTIMS invoice / control unit number
- QR code from eTIMS
- Buyer's KRA PIN (for input VAT / expense claims)
VAT & reverse charge
For cross-border work, the right wording matters. Invoice Forever offers ready-made Kenyan VAT notes such as:
- VAT charged at 16% under the VAT Act, 2013.
- Zero-rated supply — exported goods or services taxed at 0% under the VAT Act, 2013.
- Reverse-charge VAT applies to imported services under Section 10 of the VAT Act, 2013.
E-invoicing in Kenya
eTIMS (Electronic Tax Invoice Management System) is mandatory for all business enterprises — B2B, B2C and B2G — under section 23A introduced by the Finance Act 2023, which requires every business (resident or a permanent establishment of a non-resident) to issue invoices electronically. The KRA set 1 January 2024 as the deadline by which every taxpayer, whether VAT-registered or not, must generate and transmit invoices through eTIMS, and from that date only eTIMS-validated invoices are deductible for income tax. The KRA is progressively cross-validating income-tax return entries against transmitted eTIMS records, and recent Finance Act changes have widened the scope (including reverse invoicing and non-VAT-registered suppliers) and raised non-compliance penalties.
Invoice Forever can export a structured EN 16931 / Peppol BIS (UBL) e-invoice alongside the PDF (beta) — the format most of these mandates are built on. You still send it via your own access point, and some countries require their own national format.
Verified 23 July 2026 against the source. E-invoicing rules are changing quickly, so always confirm the current position with the Kenya Revenue Authority (KRA), via its eTIMS portal before you rely on it. This page is general guidance, not tax advice.
Payment terms in Kenya
Net-30 is the common commercial term, though many small suppliers invoice due-on-receipt. Bank transfer (EFT/RTGS) and mobile money (M-Pesa) are the usual payment methods; state your paybill/till or bank details on the invoice.
Questions about invoicing in Kenya
The standard VAT rate is 16%. Exports and certain essentials (such as unprocessed foodstuffs and specified medical supplies) are zero-rated at 0%, and some supplies are exempt. VAT registration is required once taxable turnover reaches KES 5 million in any 12-month period.
Yes. Your invoice must show your own KRA PIN, and you should include the buyer's KRA PIN whenever they need the invoice to claim an expense deduction or recover input VAT.
Yes. Since 1 January 2024, all businesses — VAT-registered or not — must generate and transmit invoices in real time through the KRA's eTIMS system. Invoices without a valid eTIMS reference are not accepted for tax deductions or VAT recovery.
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