Understanding eTIMS for Rental Properties in Kenya

What Is eTIMS?

The Electronic Tax Invoice Management System (eTIMS) is KRA's mandatory platform for issuing, transmitting, and validating tax invoices electronically. Since January 2024, all taxpayers — including landlords — are required to issue electronic invoices through eTIMS.

For rental property owners in Kenya, this means every rent invoice you issue to tenants must be transmitted to KRA in real time through an approved eTIMS device or system.

Do Landlords Need eTIMS?

Yes. As of 2024, KRA requires all persons generating income — including rental income — to register for and use eTIMS. This applies regardless of whether you are VAT-registered.

Landlord Type	eTIMS Required?	Method
Individual landlord (1–5 units)	✅ Yes	eTIMS Lite (phone app) or OSCU
Small portfolio (6–20 units)	✅ Yes	OSCU (Virtual Device) recommended
Large portfolio (20+ units)	✅ Yes	OSCU integration via property management software
VAT-registered landlord	✅ Yes	Full eTIMS with VAT invoicing

eTIMS Device Options for Landlords

KRA offers several ways to access eTIMS:

1. eTIMS Lite (Mobile App)

Free smartphone app from KRA
Best for landlords with few tenants
Manual invoice entry per transaction
Available on Android and iOS

2. Online eTIMS Portal

Web-based interface at etims.kra.go.ke
No hardware needed
Suitable for small landlords who prefer desktop

3. OSCU (Online Sales Control Unit) — Virtual Device

Software-based integration
Connects your property management system directly to KRA
Designed for landlords who run their portfolio through property management software
Requires OSCU Serial Number and CM-Key from KRA

4. Physical TIMS Device

Hardware device installed at your premises
More common for retail businesses
Not typically needed for rental properties

How to Register for eTIMS

Follow these steps to get started:

Log in to iTax at itax.kra.go.ke with your KRA PIN
Navigate to eTIMS — select "eTIMS" from the main menu
Choose your device type — select OSCU (Virtual Device) for software integration
Generate credentials — KRA will issue your OSCU Serial Number and CM-Key
Configure your system — enter these credentials in your property management software

What Information Goes on an eTIMS Invoice?

Every electronic invoice must include:

Seller details — your name, KRA PIN, business name
Buyer details — tenant name and KRA PIN (if applicable)
Invoice number — auto-generated by the system
Date and time — transmitted in real time
Description of supply — "Rental Income" or "Office Rent" etc.
Amount — monthly rent in KES
Tax details — VAT if applicable, or exempt status
QR Code — generated by eTIMS for verification

Penalties for Non-Compliance

Failing to comply with eTIMS carries real exposure under Kenyan law:

Failure to issue or electronically transmit a valid electronic tax invoice can attract a penalty of two times (200%) of the tax due, under section 86 of the Tax Procedures Act, 2015 (as amended by the Finance Act 2023), read with the Tax Procedures (Electronic Tax Invoice) Regulations, 2024. The penalty applies where the Commissioner is not satisfied with the reasons given for the non-compliance.
Failing to comply with the electronic tax system generally is a criminal offence, punishable by a fine of up to KES 1,000,000, imprisonment for up to 3 years, or both. This is a distinct general offence, not a per-invoice fine.

eTIMS Invoicing in PropTraka (Coming Soon)

eTIMS invoicing in PropTraka is coming soon. We're completing KRA onboarding for our OSCU integration. Once it goes live and your KRA credentials are connected, PropTraka will handle eTIMS invoicing alongside the rent records it already keeps — so the rent payments you track and the tax invoices KRA expects stay in step.

Here's what the eTIMS integration is designed to do once it's live and your OSCU credentials are connected:

Invoice Submission — when rent is collected, PropTraka will generate the eTIMS invoice and transmit it to KRA, so you won't have to re-enter each invoice by hand
OSCU Credentials Management — securely store your Serial Number and CM-Key in Settings > Compliance
Audit Log — view your submitted invoices, their KRA receipt numbers, and transmission status in one place
QR Code Generation — each invoice will carry the KRA verification QR code
Transmission Status — if a transmission doesn't go through, it will be surfaced in your audit log so you can resubmit
Credit Notes — issue eTIMS credit notes for deposit refunds, rent adjustments, or corrections that reference the original invoice
Tenant Receipt Downloads — tenants will be able to download PDF invoices with eTIMS verification details and QR codes from their Tenant Portal
Subscription Invoices — PropTraka will fiscalise its own subscription payments so you receive a KRA-compliant receipt to claim as a deductible business expense

Until eTIMS goes live in PropTraka, you can continue issuing your KRA invoices through eTIMS Lite or the online eTIMS portal, and use PropTraka for rent tracking, reconciliation, and tax-ready records in the meantime.

Setting Up eTIMS in PropTraka (When It Goes Live)

Once eTIMS invoicing is available in PropTraka, connecting it will work like this:

Go to Settings > Compliance
Enter your OSCU Serial Number from KRA
Enter your CM-Key from KRA
Click Save to connect your credentials
From then on, your rent invoices can be transmitted to eTIMS from within PropTraka

Frequently Asked Questions

Q: Do I need eTIMS if I'm under the MRI tax regime? A: Yes. eTIMS is mandatory for all taxpayers regardless of your tax regime. MRI landlords must still issue electronic invoices.

Q: Can I use eTIMS for both residential and commercial tenants? A: Yes. The system handles both. Commercial tenants may require VAT invoices, while residential usually fall under exempt supplies.

Q: What if my tenant doesn't have a KRA PIN? A: You can still issue the invoice. Use the tenant's ID number or leave the buyer PIN field as "N/A" for individual tenants.

Q: Is there a cost for eTIMS? A: KRA provides eTIMS Lite and the online portal for free. When OSCU integration through PropTraka goes live, it will be included in your subscription at no extra charge.

Q: Will tenants be able to download their rent invoices from PropTraka? A: Once eTIMS invoicing goes live in PropTraka, tenants will be able to download eTIMS-compliant PDF invoices from their Tenant Portal under Payment History. Each PDF will include seller/buyer details, VAT breakdown, eTIMS verification details, and a scannable QR code — especially useful for commercial tenants who need to claim rent as a deductible expense.

Q: How will credit notes be handled? A: Once live, PropTraka's eTIMS integration is designed to support credit notes for deposit refunds, rent adjustments, or corrections. Credit notes follow a separate numbering sequence (e.g., CN-2026-00001) and reference the original invoice. They are submitted to KRA's OSCU system as CREDIT_NOTE type.

This article is general information, not tax or legal advice. eTIMS requirements and KRA penalties can change — confirm your obligations with KRA or a qualified tax adviser before acting.

References

Kenya Revenue Authority — eTIMS: etims.kra.go.ke
Kenya Revenue Authority — iTax portal: itax.kra.go.ke
Tax Procedures Act, 2015 (No. 29 of 2015) — electronic tax invoice requirements and penalties