The Kenya Revenue Authority (KRA) has announced a new system linking its Electronic Tax Invoice Management System (eTIMS) with the Integrated Financial Management Information System (IFMIS), a move that will change how businesses supplying government entities submit their invoices.
KRA said the integration, developed together with the National Treasury, is intended to improve transparency in government payments while also helping the taxman track compliance among suppliers.
Under the new arrangement, businesses supplying goods or services to government agencies will be required to generate a valid eTIMS invoice before submitting their invoices for payment through IFMIS.
This means suppliers will need to ensure that the details on the invoice submitted to a government agency match those captured in eTIMS.
KRA said any differences between the two records could affect the processing of payments because the system will automatically validate the tax invoices.
“All suppliers engaging in business with Government entities are hereby advised to generate valid eTIMS invoices for all supplies before submission for payment processing through IFMIS,” KRA said in a notice issued on Monday, August 31.
The authority also asked suppliers to regularly check their tax compliance status and ensure that their tax records are accurate and up to date.
What the new system means for suppliers
The integration is expected to make it easier for government agencies to verify invoices before payments are made.
Previously, parts of the invoicing and verification process were handled manually, which could contribute to delays in checking documents and processing payments.
With the new system, KRA and the National Treasury expect invoice verification to become more automated, while making it easier to identify inconsistencies in government transactions.
For businesses that regularly supply government institutions, the new requirement means keeping proper eTIMS records will be important when seeking payment through IFMIS.
KRA described the integration as part of the government’s wider digital transformation efforts, saying it would strengthen financial controls and improve tax compliance.
The tax authority and National Treasury said they will continue working with suppliers and other stakeholders by providing sensitisation, technical support and guidance as the new system is implemented.