eTIMS and Tax Statistics in Kenya
I got tired of hunting for the basic Kenya tax numbers across a dozen pages, so I put the ones that actually affect a business in one place, each tied to its legal source: the VAT rate, the registration threshold, the eTIMS fee and the penalty for getting it wrong.
Last updated 13 June 2026. Every figure is cited to a primary source below.
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The figures that decide compliance
These four numbers set the rules for most Kenyan businesses. VAT is charged at 16% on standard-rated supplies. You must register for VAT once annual taxable turnover reaches KES 5,000,000. Each compliant eTIMS invoice carries a small fee, and issuing a sale without a compliant invoice carries a penalty of up to KES 1,000,000 or 10% of the tax due, whichever is higher.
eTIMS itself was introduced under Legal Notice No. 64 of 2024, and from January 2026 income and expenses are validated against compliant invoices, which is why even non-VAT-registered businesses now need to issue them. Always confirm current rates and rules with KRA, as tax law changes.
Frequently asked questions
The standard VAT rate in Kenya is 16%, applied to most goods and services. A defined list of items is zero-rated or exempt. The rate is set under the VAT Act and administered by KRA.
A business must register for VAT once its annual taxable turnover reaches KES 5,000,000. Below that threshold, VAT registration is not required, though the business still issues compliant eTIMS invoices to record income.
Each compliant eTIMS invoice carries a fee of KES 2. The far larger cost is non-compliance, not the per-invoice fee.
Issuing a sale without a compliant eTIMS invoice carries a penalty of up to KES 1,000,000 or 10% of the tax due, whichever is higher, per occurrence, under the Tax Procedures Act.
eTIMS was introduced under Legal Notice No. 64 of 2024, and from January 2026 KRA validates income and expenses against compliant invoices, which extends the practical need for eTIMS beyond VAT-registered businesses.
They come from KRA and the underlying legislation, the VAT Act and the Tax Procedures Act. Because tax law changes, confirm the current rates and thresholds with KRA before relying on them.
Veira gives a Kenyan business the POS, eTIMS and M-Pesa tools to run on the rails these figures describe. From KES 2,999 a month, with a free terminal.