Introduction
If you run a business in Kenya, ETIMS is no longer optional. The Kenya Revenue Authority’s Electronic Tax Invoice Management System requires businesses to generate electronic tax invoices for transactions and transmit them to KRA in real time. The rollout has been progressive, starting with VAT-registered businesses and expanding to cover more taxpayer categories.
For many business owners, ETIMS raises practical questions: What exactly does my system need to do? Can my existing POS handle it? What happens if my internet goes down during a sale? Do I need new hardware?
This guide answers those questions in plain language.
What ETIMS Actually Requires
At its core, ETIMS requires three things:
- Electronic Invoice Generation: Every sale must generate an electronic tax invoice with specific data fields: seller details, buyer details (where applicable), item descriptions, quantities, unit prices, tax calculations (VAT, exempt, zero-rated), totals, and a unique invoice number.
- Real-Time Transmission: Each invoice must be transmitted to KRA’s ETIMS system at the time of the transaction. KRA acknowledges receipt and returns a control number that must appear on the printed receipt.
- QR Code on Receipt: The printed receipt must include a QR code that links to the KRA verification portal. This allows anyone — the buyer, an auditor, or a regulator — to verify that the invoice was properly reported.
What Your POS Must Do
Not every POS system is ETIMS-ready. To be compliant, your POS needs:
- API Integration: The POS must connect to KRA’s ETIMS API to transmit invoices and receive acknowledgments. This requires proper API credentials, which are provisioned during the ETIMS registration process.
- Correct Tax Calculations: The system must correctly categorise items as VAT-inclusive, VAT-exclusive, exempt, or zero-rated, and calculate tax amounts accurately.
- Invoice Formatting: Generated invoices must include all required fields in the format KRA specifies.
- QR Code Generation: The receipt printer must support QR code printing, and the POS must generate the correct QR payload.
- Credit Note Handling: Returns and corrections must generate proper credit notes that are also transmitted to ETIMS.
- Offline Resilience: When the internet is unavailable, the POS must queue invoices locally and transmit them once connectivity is restored. Sales should never stop because of a connectivity issue.
What Happens When the Internet Goes Down?
This is the question we hear most often. The answer: your business keeps running.
A properly configured ETIMS-integrated POS operates in offline mode when it cannot reach KRA’s servers. Sales continue to be processed. Invoices are generated and stored locally. The moment connectivity is restored, all queued invoices are automatically transmitted to KRA. The customer still receives a receipt at the time of purchase.
The key is that your POS software must be designed with this offline capability. Some systems freeze or display errors when the connection drops — this is a software design issue, not an ETIMS requirement. Our POS solution handles offline operation seamlessly.
Do I Need New Hardware?
It depends on what you currently have:
- If you have a modern POS with API capabilities: You may only need software configuration and ETIMS integration. We can assess your current system and advise.
- If your POS is outdated or does not support APIs: You will likely need a software upgrade or replacement. In some cases, the receipt printer also needs upgrading to support QR code printing.
- If you are starting from scratch: We supply complete POS bundles (terminal, printer, scanner, cash drawer) pre-configured with ETIMS integration. Everything is tested and ready to trade from day one.
M-Pesa Integration
Since a large portion of retail transactions in Kenya involve M-Pesa, your POS should handle mobile money payments natively. Our system integrates M-Pesa via the Daraja API, supporting both STK Push (customer prompted to enter PIN) and Till Number payments. M-Pesa transactions are recorded in the POS and reflected in ETIMS invoices automatically — no separate reconciliation required.
How We Help
Our ETIMS configuration service covers the full process:
- Assess your current POS and advise on upgrade or replacement
- Register your business and devices on the KRA ETIMS portal
- Configure the POS-to-ETIMS API integration
- Set up M-Pesa payment integration
- Run test transactions to validate compliance
- Train your staff on day-to-day operations
- Provide ongoing support for ETIMS updates and troubleshooting
Need help getting ETIMS-compliant? Whether you are configuring an existing system or setting up a new POS from scratch, we can get you compliant quickly and painlessly. → Get a POS & ETIMS Quote → Browse POS hardware: parcytech.com/products/pos-hardware → Full POS & ETIMS solution: parcytech.com/solutions/pos-etims