New KRA eTIMS Stock Management Requirements for Businesses in Kenya (2026)

The Kenya Revenue Authority (KRA) is strengthening electronic stock management through its Tax Invoice Management System (TIMS) and Electronic Tax Invoice Management System (eTIMS). The initiative aims to improve the tracking of business inventory and ensure that stock records correspond with electronic tax invoices.

In a public notice dated 7 September 2026, KRA reminded businesses of their obligation to maintain accurate and up-to-date stock records. The authority also announced stakeholder consultations to support the implementation and improvement of its electronic stock management functionality.

Legal Requirements for eTIMS Stock Management

The requirement to maintain electronic stock records is provided under the following legislation:

Tax Procedures Act, 2015 – Section 23A

Section 23A was amended through the Finance Act, 2023, with the relevant electronic invoicing requirements taking effect on 1 September 2023.

The provision requires persons carrying on business to use an electronic tax invoicing system prescribed by the Commissioner, subject to applicable exemptions.

Tax Procedures (Electronic Tax Invoice) Regulations, 2024 – Legal Notice No. 64 of 2024

These Regulations commenced on 28 March 2024.

Under Regulation 4(3)(c), users of electronic invoicing systems are required to maintain stock-in and stock-out records in the system, including records of local purchases and imports.

The Regulations also provide for certain categories of taxpayers, including service providers and qualifying non-VAT-registered businesses, to use systems that do not maintain stock records.

 What Stock Records Must Businesses Maintain?

According to KRA’s September 2026 guidance, businesses should maintain accurate records of all stock movements, including:

• Stock purchased or received.

• Goods sold.

• Stock transferred between business locations.

• Customer returns.

• Stock adjustments.

• Damaged, expired or otherwise disposed-of goods.

These records should accurately reflect the movement of inventory and correspond with transactions invoiced through TIMS/eTIMS.

 Which Businesses Are Affected?

The requirements are particularly relevant to businesses dealing in physical goods, including:

• Manufacturers.

• Wholesalers and distributors.

• Retail shops and supermarkets.

• Importers.

• Businesses operating multiple branches.

Businesses should ensure that their inventory management systems capture purchases, sales and other stock movements accurately.

 When Do the Requirements Take Effect?

The electronic stock-record obligation is not entirely new. Its legal foundation dates back to 1 September 2023, while the detailed electronic invoicing requirements are provided under the Regulations that commenced on 28 March 2024.

The new development in 2026 is KRA’s effort to strengthen implementation through electronic stock management functionality.

KRA announced stakeholder consultations beginning in September 2026. However, its public notice did not specify a separate nationwide mandatory rollout date for the enhanced functionality.

 How Should Businesses Prepare?

Businesses should:

• Maintain accurate purchase and sales records.

• Reconcile physical stock with accounting records.

• Record stock transfers, returns and adjustments.

• Ensure inventory movements correspond with TIMS/eTIMS transactions.

• Review their accounting and inventory management systems.

Proper stock management helps businesses maintain accurate financial records and comply with KRA requirements.

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