What is the KRA VAT rate in Kenya?

Kenya Revenue Authority (KRA) VAT is 16% — one of the higher rates in East Africa. You must register for VAT once your annual taxable turnover exceeds KSh 5 million.

What is KRA eTIMS and do I need it?

eTIMS (Electronic Tax Invoice Management System) is KRA's mandatory e-invoicing system for VAT-registered taxpayers. If you are VAT-registered, you must generate and transmit invoices through eTIMS or a certified third-party system. Non-VAT-registered freelancers and small businesses do not need eTIMS — a professional PDF invoice like those generated by this tool is sufficient.

Can I include M-Pesa payment details on my Kenya invoice?

Yes. M-Pesa is the dominant payment method in Kenya for B2B transactions under KSh 70,000. Include your Safaricom number (07XXXXXXXX) and account name. For larger amounts, bank transfer (Pesalink/RTGS) is preferred.

How do I invoice international clients from Kenya in USD?

Select Kenya for your defaults (KRA context, invoicePrefix KE-), then change the currency symbol to $ and code to USD. Set tax to 0% for exported services. Provide your Wise, Payoneer, or USD bank account details in the payment section.

🇰🇪 Kenya · KRA VAT 16% · M-Pesa

How to Invoice Clients in Kenya

Kenya has a well-developed invoicing culture and strong mobile payment infrastructure. M-Pesa dominates, KRA VAT is 16%, and the KRA eTIMS system is mandatory for VAT-registered businesses. Here's what you need to know.

What must appear on a Kenya invoice?

Your name or business name and contact details
Client name and address
Invoice number — e.g. KE-0001 (sequential)
Invoice date and due date
Itemised services in KSh (Kenya Shilling)
KRA VAT 16% — only if VAT-registered (threshold: KSh 5 million/year)
Grand total
Payment method — M-Pesa number, bank account, or Pesalink details

KRA VAT — when to charge it

Kenya Revenue Authority (KRA) VAT is 16%. You must register for VAT when your annual taxable turnover exceeds KSh 5 million (approximately $38,500 USD).

Common exemptions and zero-rating: agricultural inputs, financial services, educational services, and exported services to non-resident clients. If you export services — e.g. working for international clients remotely — the supply may be zero-rated.

KRA eTIMS — do you need it?

KRA's Electronic Tax Invoice Management System (eTIMS) is mandatory for VAT-registered taxpayers. If you're VAT-registered, you must issue invoices through eTIMS or a KRA-approved third-party system.

Not VAT-registered? You do not need eTIMS. A professional PDF invoice issued through this tool is sufficient for non-VAT-registered freelancers and small businesses.

KRA eTIMS registration: itax.kra.go.ke → eTIMS portal. You'll need your KRA PIN and business details.

M-Pesa and mobile money payment instructions

M-Pesa (Safaricom) has 34+ million active users in Kenya and handles over $300 billion annually. It is widely used for B2B payments up to approximately KSh 70,000 per transaction.

M-Pesa: Safaricom numbers starting 07XX or 01XX. USSD: *334#
Airtel Money: 073X numbers
Pesalink / RTGS: For larger B2B amounts (banks direct transfer)

For M-Pesa Business Pay Bill: include your Pay Bill number and account reference if applicable.

Payment terms

Freelancers: Net 14–21 days, or request 30–50% upfront
B2B services: Net 30 days
NGOs / INGOs: Net 30–45 days (Nairobi has a large NGO sector)

Create your Kenya invoice →

KRA VAT 16% pre-filled · M-Pesa fields · Free PDF