The Kenya Revenue Authority (KRA), in partnership with the National Treasury, has announced the successful integration of the Electronic Tax Invoice Management System (eTIMS) with the Integrated Financial Management Information System (IFMIS), in a move expected to strengthen transparency, accountability and efficiency in government transactions.
The integration forms part of the government’s wider Digital Transformation Agenda and is aimed at creating a more seamless connection between the supply of goods and services to government institutions, the generation of tax invoices and the processing of payments.
Under the new system, suppliers and vendors doing business with government entities will be required to generate valid eTIMS invoices for all goods and services before submitting payment requests through IFMIS.
KRA said the details contained in invoices submitted to government institutions must correspond exactly with the invoices generated and recorded in eTIMS. This requirement is intended to facilitate automated verification of tax invoices and improve compliance with tax regulations.
The integration is also expected to reduce inconsistencies in invoicing and provide government agencies with a more efficient way of validating transactions before payments are processed.
Suppliers have therefore been advised to ensure that their eTIMS accounts are properly set up and that invoices are generated accurately and in accordance with the requirements. They have also been encouraged to regularly check their tax compliance status and ensure that their tax records and other relevant information remain accurate and up to date.
The move comes as the government continues to expand the use of digital platforms in revenue collection, public financial management and service delivery.
By linking eTIMS and IFMIS, the government seeks to strengthen the relationship between tax administration and public expenditure management, while providing greater visibility of transactions involving government institutions and their suppliers.
The system is also expected to enhance accountability by ensuring that invoices submitted for payment can be electronically validated against records maintained by the tax authority.
For businesses supplying government entities, compliance with the new operational requirements will be an important part of the payment process. Suppliers who fail to generate valid eTIMS invoices or submit invoice details that do not match the records in eTIMS could face challenges during payment processing.
KRA has said suppliers experiencing difficulties with eTIMS onboarding, invoice generation or other related processes will continue to receive assistance through its established support channels.
The integration marks another step in Kenya’s ongoing shift towards digital government services, with authorities seeking to use technology to improve tax compliance, strengthen public financial management and make government transactions more transparent and efficient.
