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eTIMS for logistics businesses

The short answer

Whether a business in this trade has to issue eTIMS invoices follows from the rules that apply to any Kenyan business, not from the trade itself; the rules on who must comply are what decide it. What the trade changes is the shape of the job. Business-to-business by definition. Invoices reference consignment notes and delivery proof, and clients withhold payment on any mismatch. Withholding tax on transport services is a routine consideration.

A business moving goods for others, charging per trip, per tonne or per consignment.

How stock behaves in this trade

No goods of its own, but fuel, tyres and maintenance consumed per vehicle per trip, where cost per trip is the number that decides whether a route is profitable. The usual lines are freight and haulage, courier and parcel delivery, warehousing and clearing and forwarding.

What invoicing actually looks like here

Business-to-business by definition. Invoices reference consignment notes and delivery proof, and clients withhold payment on any mismatch. Withholding tax on transport services is a routine consideration.

What tends to go wrong

  • Fuel and maintenance cost per vehicle untracked
  • Client invoices raised late after delivery
  • Proof of delivery disputes
  • Demurrage and detention charges

Customers here usually pay by bank transfer, m-pesa and corporate credit accounts.

How customers pay in this trade

Payment in a logistics business usually comes through bank transfer, m-pesa and corporate credit accounts. That mix decides how hard reconciliation is: every separate channel is a separate record that has to agree with the sales it paid for, and the trades that struggle most are the ones running three or four at once without anything joining them up.

Compliance angles that apply to this trade

  • vat registration
  • invoice contents
  • customer pin
  • withholding tax
  • proof of delivery

What the rules say

Practical guidance

This page explains how a requirement generally works. It is not tax advice, and it cannot account for the specifics of any one business. For a position you intend to rely on, confirm with KRA directly or with a registered tax agent.

Source: Kenya Revenue Authority
Practical guidance

Tax rules in Kenya change with each Finance Act and with regulations made during the year. Before acting on any figure, deadline or threshold, check the current position on KRA's own website.

Source: Kenya Revenue Authority

What we are not stating here. Some of the specific requirements relating to this topic have not yet been verified against their primary source by our reviewer, so they are withheld from this page rather than stated from memory. That means you will not find a threshold, rate, deadline or penalty figure below. For those, check KRA directly. Everything else on this page explains how the mechanism works and is not affected.

Common questions

Does a logistics business need to issue a tax invoice for every sale?

Business-to-business by definition. Invoices reference consignment notes and delivery proof, and clients withhold payment on any mismatch. Withholding tax on transport services is a routine consideration.

What usually goes wrong with records in a logistics business?

The recurring problems in this trade are fuel and maintenance cost per vehicle untracked; client invoices raised late after delivery; proof of delivery disputes; demurrage and detention charges. Each of them shows up in the records before it shows up in the bank balance.

How should a logistics business keep stock records?

No goods of its own, but fuel, tyres and maintenance consumed per vehicle per trip, where cost per trip is the number that decides whether a route is profitable. Records that do not reflect that pattern will not tell you anything useful, whatever system produces them.

How do I know this information is current?

Tax rules in Kenya change with each Finance Act and with regulations made during the year. Before acting on any figure, deadline or threshold, check the current position on KRA's own website.

More for logistics businesses

Related trades

Where logistics businesses cluster

Logistics businesses are a named sector in 16 of the towns covered here.

Sources

  1. officialeTIMS (Electronic Tax Invoice Management System) — Kenya Revenue Authority, checked 2026-09-18
  2. officialValue Added Tax Act, 2013 (Act No. 35 of 2013) — National Council for Law Reporting (Kenya Law), checked 2026-09-18
  3. officialKenya Revenue Authority — Kenya Revenue Authority, checked 2026-09-18

Keeping the records this needs

Logistics businesses deal with fuel and maintenance cost per vehicle untracked. That is a records problem before it is a tax problem, and it is what Veira was built for.

See how Veira handles itAsk about setting this up

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Published 2026-09-25 · Updated 2026-09-25 · Compiled by etims.online editorial team · 4 requirements withheld pending verification