eTIMS for Manufacturers in Kenya: The Complete 2026 Guide

A manufacturer sells mostly to other businesses: distributors, wholesalers and retailers, usually in bulk and often on credit. That B2B nature makes the buyer KRA PIN essential on every invoice, because the buyer claims the input VAT, and it makes credit tracking and accurate large invoices central to the operation.

Manufacturers also sit on both sides of VAT: they pay input VAT on raw materials and charge output VAT on finished goods, reclaiming the difference. Clean eTIMS records on the sales side, matched to the input VAT on purchases, are what keep a manufacturer's VAT position correct.

VAT treatment for a manufacturer. Most manufactured goods are standard-rated for VAT, so a manufacturer charges output VAT on sales and shows it on the eTIMS invoice, while reclaiming the input VAT paid on raw materials and inputs. Some inputs or finished goods may be zero-rated or exempt depending on the product, so the treatment must be set per item.

Because the input-output VAT mechanics are central and product treatments vary, set each finished good to its correct rate, keep purchase invoices for input VAT, and confirm the current position for your products with KRA.

Running a manufacturer brings its own compliance demands. The specific ones that matter for eTIMS are:

- Sales are largely B2B, so the buyer PIN goes on every invoice

- Bulk sales on credit need accurate invoices and balance tracking

- Input VAT on materials is reclaimed against output VAT on sales

Get these right and eTIMS runs quietly in the background of your manufacturer. Get them wrong and you face rejected invoices, disallowed expenses for your customers, and exposure during a KRA review.

Deadlines and penalties for manufacturers: KRA has phased eTIMS in, and from 2026 the income-validation rules mean an expense not supported by a compliant invoice can be disallowed. For a manufacturer that cuts both ways. Your own purchases need compliant supplier invoices to be deductible, and your customers need a compliant invoice from you to claim what they spend with you. Non-compliance can attract penalties under the Tax Procedures Act, disallowed input VAT, and lost business from customers who insist on a valid invoice.

There is no separate eTIMS deadline that singles out manufacturers. The practical answer is that you should already be issuing compliant invoices, because the cost of not doing so, in penalties and lost deductible expenses, grows the longer you wait. Confirm the current deadlines and penalty amounts with KRA, as they change.

What a manufacturer needs to be eTIMS-ready:

- An active KRA PIN and the correct tax registration for your turnover

- Every product or service mapped to its correct tax treatment

- A reliable way to capture the buyer KRA PIN for business customers

- A compliant system that issues invoices, works offline, and reconciles M-Pesa, so compliance happens as you trade

Record-keeping is the other half of the job. Beyond issuing invoices, a manufacturer should keep its eTIMS records, and the supplier invoices behind its own purchases, organised and reconciled. KRA can review records going back several years, so the goal is a system where every sale and purchase is already captured and searchable rather than reconstructed from receipts in a drawer. That is the difference between a quick review and a stressful one.

A practical path for a manufacturer in Kenya. Work through it in order.

1. 1

   Confirm the KRA PIN and VAT registration

   Ensure an active KRA PIN and VAT registration, since manufactured goods are generally standard-rated and you reclaim input VAT.

2. 2

   Set up finished goods with the right rate

   Configure each product with its correct VAT treatment so output VAT is charged correctly per item.

3. 3

   Capture the buyer PIN on every B2B sale

   Capture the buyer KRA PIN so distributors and retailers can claim the input VAT on what they buy.

4. 4

   Invoice bulk and credit sales compliantly

   Issue a compliant eTIMS invoice at the sale, track the customer balance for credit, and use credit notes for returns.

5. 5

   Track input VAT on purchases

   Keep compliant purchase invoices for raw materials so input VAT is reclaimed against output VAT.

6. 6

   Reconcile and file

   Reconcile sales and purchases so your VAT position and filing summarise records you already hold.

7. 7

   Train whoever rings up a sale

   Compliance only holds if the people taking payment use the system every time. Show staff how to issue a compliant invoice, when to capture a buyer PIN, and how to handle refunds with a credit note, so no sale at your manufacturer slips outside eTIMS.

8. 8

   Keep records reconciled, then file from real data

   Reconcile sales against M-Pesa, cash and bank as you go, so at filing time your return is a summary of records you already hold rather than a month-end reconstruction. This is where a manufacturer saves the most time and avoids errors.

9. 9

   Confirm the current rules with KRA

   Rates, thresholds, exemptions and deadlines change. Before relying on a specific figure, confirm the current position for your manufacturer at kra.go.ke or with your tax adviser, so your invoices stay correct as the rules move.

Veira is built for Kenyan businesses like manufacturers. It issues a compliant KRA eTIMS invoice automatically on every sale, applies the right tax treatment per item, captures the buyer KRA PIN for business customers, and reconciles M-Pesa and Pochi payments to each sale. It runs on a free handheld terminal or the phone you already own, and keeps working offline, recording sales locally and transmitting to KRA when the connection returns.

For a manufacturer, that means compliance happens as you trade, not as a separate evening of paperwork. Onboarding takes a weekend, with local support to help you switch from whatever you use now. See how Veira works for manufacturers, or book a free demo. It runs from KES 2,999 a month, with a free terminal included and a 30-day money-back guarantee.

Switching is low-risk. There is a 30-day money-back guarantee, no expensive hardware to buy, and the system runs on a phone you already own, so a manufacturer can move from manual or non-compliant invoicing to fully compliant KRA records in a weekend. If you sell across more than one location or counter, Veira keeps every outlet on the same compliant system and the same reporting, so the whole manufacturer reconciles as one.