How to use this kenya invoice
- Add your business name and your KRA PIN in the “Tax / VAT ID” field. It shows as “KRA PIN” on the invoice.
- Add your client’s name, and their KRA PIN if they are a business.
- List the goods or services in shillings.
- If you are VAT-registered, turn on Tax in Totals and set 16% with the label VAT.
- Add your M-Pesa Paybill or Till number, or bank details, in the notes, then download the PDF.
Important: eTIMS and tax invoices
Kenya Revenue Authority (KRA) requires businesses to issue invoices through its electronic system, eTIMS. Business customers generally can’t claim an expense, or VAT if they are registered, unless it is backed by an eTIMS invoice.
A PDF made here is not an eTIMS invoice, because it is not sent to KRA. It is useful for:
- quotations and proforma invoices before a sale
- a clear, branded invoice or statement to send alongside your eTIMS invoice
- clients outside Kenya, and receipts for your own records
To issue eTIMS invoices, KRA offers free options for small businesses, including the eTIMS app and USSD. Check KRA’s website or ask a tax adviser for the rules that apply to your business, as they have changed several times.
What to include on a Kenyan invoice
- Your KRA PIN, and your client’s PIN for business sales.
- VAT at 16%, only if you are registered for VAT. Show it separately from the net amount.
- Payment details: M-Pesa Paybill or Till number with the account to use, or your bank and account number.
- Withholding tax: some clients deduct withholding tax before paying. Agree this in advance; the invoice shows the full amount, and the client gives you a withholding certificate for the deduction.
Frequently asked questions
Is an invoice from this template valid for KRA?
It is a proper commercial invoice, but it is not an eTIMS invoice, so business customers may not be able to claim it as an expense. Issue the official invoice through eTIMS and use this for quotes, proformas or as a cover document.
What is the VAT rate in Kenya?
The standard VAT rate is 16%. Only VAT-registered businesses should charge it. Check KRA for zero-rated and exempt items.
Where do I put my M-Pesa details?
In the notes at the bottom of the invoice, for example “Pay via M-Pesa Paybill 000000, account INV-0001”.
Can I invoice clients abroad in dollars?
Yes. Change the currency to USD, EUR or GBP in the editor. Exported services can have different VAT treatment, so check with KRA or your adviser.