Why knowing how to create invoices matters for your business
Creating an invoice is how you document a sale, request payment, and prove your business income to KRA. If you cannot issue a professional invoice, you look unprofessional to business customers and you lack the records KRA expects when they audit you. Learning to create invoices correctly takes 30 minutes and pays dividends for years.
Most businesses in Kenya create invoices one of three ways: (1) using a template in Word or Excel, (2) using the KRA eTIMS Lite portal (free but manual), or (3) using a POS system that generates them automatically. The method depends on your transaction volume. A freelancer with 2-3 invoices per month can use a template. A shop with 200+ daily sales needs a POS system.
The good news is that creating a compliant invoice in Kenya is not complicated. You just need to include the right information, keep a copy, and (if you want KRA compliance) transmit it through eTIMS or use eTIMS Lite.
How to create an invoice step-by-step
Follow this process whether you are using a template, a spreadsheet, or eTIMS Lite.
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Step 1: Start with a template or blank document
You can use a Word template (search "invoice template"), an Excel spreadsheet, or the KRA eTIMS Lite portal. If you are doing fewer than 20 invoices monthly, a template is fine. If you do more, automate it or use a POS system.
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Step 2: Add your business information at the top
Your business name, address, phone number, and KRA PIN. Example: "Karibu Supermarket, Nakuru Town Center, Nakuru. KRA PIN: 123456789." This identifies who issued the invoice.
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Step 3: Add the customer information
For business-to-business sales, include the buyer's business name, address, and KRA PIN. For consumer sales, you can skip this or just put "Anonymous customer." Example: "Bill to: ABC Restaurants, Nairobi CBD, KRA PIN: 987654321."
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Step 4: Create an invoice number and date
Use sequential numbering (Invoice #001, #002, #003, etc.) so you can track invoices. Add the date the sale happened. Example: "Invoice #047, Date: 15 June 2026."
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Step 5: List what you sold with line items
For each item or service, show: description, quantity, unit price, and total. Example: "50 kg Rice @ KES 4,000 per bag = KES 200,000" or "Web design services, June 1-15 = KES 50,000." Be clear enough that the buyer understands what they are paying for.
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Step 6: Calculate and add VAT if you are VAT registered
If VAT registered: show VAT at 16% as a separate line. If not VAT registered: show VAT as 0% or leave it off. Example: "Subtotal KES 100,000 + VAT 16% KES 16,000 = Total KES 116,000."
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Step 7: Show the total amount due clearly
Make the total stand out so there is no confusion about the amount the buyer owes. Example: "TOTAL DUE: KES 116,000."
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Step 8: Add payment terms
When payment is due. Options: "Due on receipt" (immediately), "Net 7" (within 7 days), "Net 30" (within 30 days). Example: "Payment terms: Due on receipt."
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Step 9: Add payment instructions
How the customer should pay. Examples: "M-Pesa to 0712345678," "Bank transfer to ABC Bank account 12345678," "Cash on delivery," etc. Be clear so payment is easy.
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Step 10: If using eTIMS Lite, submit for control number and QR code
If you want a compliant eTIMS invoice (required for business sales in Kenya), submit the invoice through the KRA eTIMS Lite portal. KRA will add a control number and QR code, making it compliant. Without eTIMS, it is just a regular invoice.
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Step 11: Keep a copy for your records
After you issue the invoice, keep a copy in a file (physical or digital). You need these records for KRA audits and to track unpaid invoices. Organize them by date or invoice number.
Common mistakes when creating invoices in Kenya
Not numbering invoices sequentially
Random numbering (Invoice #005, #001, #010) looks chaotic and makes KRA suspicious. Use sequential numbering so every invoice has a clear place in the sequence.
Forgetting to include your KRA PIN
Your KRA PIN identifies your business and proves you are registered. Every invoice should show it.
Not keeping a copy of invoices you issue
After you send the invoice to the customer, keep a copy in your records. You will need these for tax records and to track unpaid invoices.
Using an old invoice template without updating required fields
If you copy an invoice template online, make sure it includes all the information KRA requires (your KRA PIN, business name, address, customer name, description of what was sold, etc.). Do not just use a generic template.
Creating invoices by hand for large amounts
Handwritten invoices over KES 10,000 look unprofessional and are hard to read. Type or print them.
Not specifying what was sold clearly
Vague descriptions like "Service: KES 50,000" do not tell the customer what they are paying for. Be specific: "Web design consultation, 5 hours at KES 10,000/hour = KES 50,000."
Forgetting to include payment instructions
The customer should be able to look at the invoice and know exactly how to pay you. "Send payment to M-Pesa 0712345678" or "Bank transfer to ABC Bank account 12345678." Make it obvious.
Not charging VAT when you are VAT registered
If your business is VAT registered, you are required to charge VAT on taxable supplies. Forgetting to include it means you are giving away the government's cut, which is your legal responsibility to charge.
A complete invoice example for a Kenyan small business
Karibu Supermarket in Nakuru, owned by Mama Zainab, creates an invoice for a restaurant. Here is what it looks like: (1) Header: "KARIBU SUPERMARKET, Nakuru Town Center, Nakuru. Phone: 0712345678. KRA PIN: A123456789X" (2) Invoice details: "Invoice #047, Date: 15 June 2026" (3) Customer: "Bill to: ABC Restaurants, Nairobi CBD. KRA PIN: B987654321Y" (4) Line items: "50 kg Rice @ KES 4,000/bag = KES 200,000. 20 liters Cooking Oil @ KES 800/liter = KES 16,000. 100 kg Tomatoes @ KES 300/kg = KES 30,000." (5) Subtotal: KES 246,000. VAT (16%): KES 39,360. (6) Total: "TOTAL DUE: KES 285,360" (7) Terms: "Payment terms: Due on receipt." (8) Payment: "M-Pesa: 0712345678 or Bank transfer: ABC Bank Account 12345678." Mama Zainab prints the invoice, gives it to the restaurant, and keeps a copy in her file. If she uses eTIMS Lite, she also submits it to KRA for a control number and QR code.
A freelance consultant in Nairobi creates an invoice for a client company. (1) Header: "JOHN CONSULTING, Nairobi. Phone: 0721234567. KRA PIN: C111222333Y" (2) Invoice details: "Invoice #012, Date: 14 June 2026" (3) Customer: "Bill to: Tech Innovations Ltd, Westlands, Nairobi. KRA PIN: D999888777X" (4) Services: "Strategic planning consulting, June 1-10, 40 hours @ KES 1,250/hour = KES 50,000." (5) Subtotal: KES 50,000. VAT: 0% (freelancers are often not VAT registered). (6) Total: "TOTAL DUE: KES 50,000" (7) Terms: "Payment terms: Net 30 (due by 14 July 2026)." (8) Payment: "Bank transfer: Equity Bank Account 12345678 (Account Name: John Consulting)." John emails the invoice to the client and keeps a copy in a folder on his computer.
Trading without eTIMS-compliant tax invoices risks KRA penalties, blocked VAT input claims for your customers, and receipts a business buyer cannot expense.
Veira signs every sale to KRA eTIMS automatically, so each receipt is compliant the moment it prints, with no separate device to reconcile.
How Veira makes creating invoices automatic
Veira creates invoices automatically every time you ring up a sale. You do not have to manually number invoices, add your KRA PIN, calculate VAT, or submit anything to KRA. The system handles all of it. An invoice is generated in seconds, ready to print or email.
Every invoice is automatically transmitted to KRA as a compliant eTIMS invoice (with control number and QR code) so your sales record is complete and auditable. You do not have to use eTIMS Lite or submit invoices manually-Veira does it behind the scenes.
If you need to issue an invoice outside the POS (for a proposal, a one-off consulting fee, etc.), you can still use Veira to create and track it, or use a simple template. But for every regular business sale, Veira creates the invoice automatically.
Frequently asked questions
Can I create an invoice using just a Word template?
Do I need to use eTIMS Lite to create a compliant invoice?
Can I create an invoice in Google Sheets or Excel?
What if I forgot to give the customer an invoice-can I issue one retroactively?
Do I need to use my business name on the invoice or can I use my personal name?
Can I edit or delete an invoice after I issue it?
What if the customer refuses to pay the invoice amount?
How long do I need to keep copies of invoices I created?
Creating an invoice in Kenya is simple if you follow the steps above: include your business information, the customer details, a clear description of what was sold, the amount due, payment terms, and your KRA PIN. For a compliant eTIMS invoice, submit through eTIMS Lite or use a POS system like Veira that does it automatically. Keep copies of every invoice in your records. If you are creating more than 20 invoices monthly, a POS system will save you hours every week. Book a free Veira demo and see how much invoicing becomes automatic.