KRA tightens government supplier compliance with eTIMS-IFMIS link

KRA tightens government supplier compliance with eTIMS-IFMIS link
KRA headquarters/COURTESY

NAIROBI, Kenya, Aug 31 – Businesses supplying goods and services to the government will now face tighter invoice compliance requirements following the integration of the Kenya Revenue Authority’s (KRA) Electronic Tax Invoice Management System (eTIMS) with the government’s Integrated Financial Management Information System (IFMIS).

Under the new arrangement, suppliers must generate valid eTIMS invoices before submitting claims for payment through IFMIS, with invoice details required to match exactly across the two systems.

The integration effectively introduces an additional compliance checkpoint in the government procurement and payment process, as invoices that do not meet eTIMS requirements could face validation issues before payments are processed.

“Suppliers must generate valid eTIMS invoices for all supplies before submission for payment processing through IFMIS,” KRA said.

“The details of invoices submitted to Government entities must correspond precisely with the invoices generated and recorded in eTIMS.”

KRA said the integration will allow automated validation of tax invoices while improving transparency and accountability in government transactions.

For suppliers, the system means businesses will need to ensure their tax records, invoices and compliance status are accurate and up to date before seeking payment from government entities.

The move is part of the government’s wider digitalization of financial and tax administration and seeks to create a direct link between the invoicing of government supplies and the payment process.

While KRA said the integration is aimed at improving efficiency, it also shifts more responsibility to suppliers to ensure invoices are correctly generated and captured in eTIMS before being submitted through IFMIS.

This could be particularly important for small and medium-sized businesses that depend on government contracts and may have to adjust their invoicing processes to avoid delays arising from discrepancies.

KRA and the National Treasury said they will continue providing sensitization, technical support and guidance during the transition.

The taxman said suppliers requiring assistance with eTIMS onboarding, invoice generation or related matters can access its support services as the integrated system takes effect.