KRA eTIMS for Restaurants: What You Must Do in 2026

A lot of restaurant owners still believe eTIMS is something for larger businesses. That was true once. It is not true now, and the change has been quiet enough that many people have missed it.

What eTIMS actually is

eTIMS is KRA's electronic tax invoice system. Invoices generated through it carry a KRA reference and QR code, which is what makes them valid for tax purposes.

What changed

eTIMS originally applied to VAT-registered businesses and those above a KES 5 million annual turnover threshold. That threshold has been removed. Hospitality is also explicitly named among the regulated sectors. In practice, if your restaurant issues invoices for taxable sales, this now applies to you regardless of size.

Why it matters in practice

An invoice without an eTIMS reference is not legally valid for tax purposes. Three consequences follow:

• Business customers cannot claim the expense - so corporate clients, event bookings and company accounts will start asking for compliant invoices
• You cannot treat the sale as VAT-deductible
• KRA can disallow the transaction entirely in an audit

For most restaurants the commercial pressure arrives before the tax pressure. The first time a company books an event and asks for a proper invoice you cannot produce, you lose the booking.

OSCU or VSCU?

KRA offers two integration modes. OSCU suits businesses whose invoicing is always online. VSCU suits bulk invoicing or businesses that are not always connected. Most restaurants with a stable internet connection use OSCU. You can self-integrate or use a KRA-verified third-party integrator.

How to become compliant

1. Confirm your position with your accountant - circumstances differ
2. Make sure your KRA PIN and tax registration are current
3. Choose OSCU or VSCU based on how you invoice
4. Integrate your POS, or use a system with eTIMS built in
5. Test with real transactions before you rely on it
6. Train whoever issues invoices

What it costs

With Orderly, eTIMS is an add-on: KES 15,000 one-time integration covering KRA onboarding, testing and certification, then KES 12,000 a year for ongoing compliance as KRA updates its systems. It is included at no extra cost on Orderly Enterprise.

It is charged separately because it is genuine ongoing engineering rather than a switch we flip once.

This article explains the rules in general terms and is not tax advice. Confirm your own obligations with your accountant or KRA.

Related reading

• What a restaurant POS costs in Kenya
• Which plan includes eTIMS

Get eTIMS handled

Orderly handles KRA onboarding, testing and certification, then keeps you compliant as KRA changes its systems. KES 15,000 setup and KES 12,000 a year, included free on Enterprise. See how eTIMS works with Orderly.