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
- Best for landlords using PropTraka — invoices are submitted automatically
- 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
KRA enforces strict penalties for eTIMS non-compliance:
| Violation | Penalty |
|---|---|
| Failure to register for eTIMS | KES 100,000 or imprisonment |
| Issuing manual invoices instead of electronic | KES 100,000 per invoice |
| Late transmission of invoices | KES 50,000 per instance |
| Failure to display QR code | KES 50,000 |
How PropTraka Automates eTIMS Compliance
PropTraka integrates directly with KRA's OSCU system so you never have to manually enter invoices:
- Automatic Invoice Submission — when rent is collected, PropTraka generates and transmits the eTIMS invoice to KRA automatically
- OSCU Credentials Management — securely store your Serial Number and CM-Key in Settings > Compliance
- Audit Log — view all submitted invoices, their KRA receipt numbers, and transmission status
- QR Code Generation — every invoice includes a KRA-verified QR code
- Error Handling — if a transmission fails, PropTraka retries and alerts you
Setting Up eTIMS in PropTraka
- Go to Settings > Compliance
- Enter your OSCU Serial Number from KRA
- Enter your CM-Key from KRA
- Click Save — PropTraka will verify the connection
- All future rent invoices will be automatically transmitted to eTIMS
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. OSCU integration through property management software like PropTraka is included in your subscription.