By Michelle Ndaga
The Kenya Revenue Authority (KRA) now requires individuals earning additional income from side hustles or rental properties to register on the electronic Tax Invoice Management System (eTIMS) in order to remain tax compliant.
According to the new directive, such earnings will be treated as business income, meaning affected taxpayers must generate digital invoices through the cloud-based eTIMS platform, which links directly with accounting systems.
The move is intended to streamline tax reporting, standardize documentation and improve compliance.
KRA has also tied the use of eTIMS to the issuance of the Tax Compliance Certificate (TCC) — a document increasingly necessary for job applications, tender submissions, licensing processes and various official transactions.
Without being registered on eTIMS and documenting side income, individuals may be unable to obtain the certificate.
The requirement, announced last month, comes as part of efforts to curb tax evasion and expand the country’s revenue base amid ongoing fiscal challenges.
KRA says the digitization measure is aimed at ensuring fairness, accuracy and transparency in tax reporting, noting that informal and supplementary income streams have continued to grow across the country.
Taxpayers who fall under the affected categories are encouraged to familiarize themselves with the system and begin invoicing through the platform to avoid penalties for non-compliance.
