The short answer
An arrangement where the buyer raises the invoice rather than the seller. It exists because plenty of real supply relationships have a large buyer and a supplier with no system at all.
What it actually is
An invoicing model rather than a piece of software: it changes who raises the document, not what you install. What it does during an outage depends on how it is set up, which is worth asking before you commit.
What the rules say
Stated by the publisher from the cited KRA material. Our reviewer has not yet re-checked it against the source, so confirm anything you are about to act on with KRA directly.
KRA identifies several categories of eTIMS solution, among them eTIMS Online, the eTIMS Client, eTIMS Lite, system-to-system integration, reverse invoicing and buyer-initiated invoicing. Which one suits a business depends on how it issues invoices rather than on what it sells.
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.
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.
When this is the right shape
Our reading, not a rule. Nothing below is a statement of what KRA requires.
- A buyer purchasing regularly from small suppliers who cannot issue an electronic invoice themselves
- Farm-gate, informal and smallholder supply, where the paperwork capacity sits on the buying side
- A business whose deductions depend on documents its suppliers cannot produce
Where it gets awkward
Our reading, not a rule. Nothing below is a statement of what KRA requires.
- Any relationship where the supplier can issue the invoice perfectly well, in which case this is a complication rather than a solution
- A buyer not prepared to carry the record-keeping, because the burden moves with the document
The invoicing pattern it assumes
Our reading, not a rule. Nothing below is a statement of what KRA requires.
The invoice originates with the party that has the system, which is the opposite of the usual direction.
What getting started involves
Our reading, not a rule. Nothing below is a statement of what KRA requires.
The work is agreement and record-keeping rather than installation. Both sides need to understand who is raising what, and the conditions under which this applies are exactly the kind of detail to confirm with KRA rather than assume from a summary.
Buyer-initiated invoicing in specific trades
Common questions
What is Buyer-initiated invoicing?
An arrangement where the buyer raises the invoice rather than the seller. It exists because plenty of real supply relationships have a large buyer and a supplier with no system at all.
When is Buyer-initiated invoicing the wrong choice?
Any relationship where the supplier can issue the invoice perfectly well, in which case this is a complication rather than a solution. That is our reading of how the channel behaves, not a rule.
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.
Other eTIMS channels
Sources
- officialeTIMS (Electronic Tax Invoice Management System) — Kenya Revenue Authority, checked 2026-09-18
- officialKenya Revenue Authority — Kenya Revenue Authority, checked 2026-09-18