5 Must-Know Facts About ETR Receipts in Kenya — And Why They Matter for Your Business

In Kenya’s rapidly evolving business landscape, compliance isn’t just a formality—it’s a strategy. One of the hottest topics among SMEs, corporates, and entrepreneurs in 2025? ETR (Electronic Tax Register) receipts.

As the Kenya Revenue Authority (KRA) goes fully digital through the eTIMS platform, businesses across sectors must adopt real-time electronic tax invoicing. At Janta Kenya, where we support businesses in streamlining their operations and building compliant, future-ready teams, we’ve seen firsthand how important this transition is.

If you’re a business owner, finance lead, or operations executive, here’s what you need to know about ETR receipts—and how Janta can support your compliance journey.

1. Not All Receipts Count as ETRs

Many businesses still believe that an M-Pesa confirmation message or a printed receipt is good enough. It isn’t.

A legitimate ETR is:

• Generated through KRA’s eTIMS system
• Transmitted to KRA in real-time
• Includes tax-specific data like VAT breakdowns and control numbers

Without an ETR, there is no tax compliance record, meaning you or your clients may not be able to prove that VAT was remitted. At Janta, we’ve seen how missing ETR documentation can block tax deductions and even affect audits during M&A due diligence.

2. A Valid ETR Has Specific Information

Here’s what a compliant ETR must include:

• KRA PIN of the supplier
• Invoice number
• Breakdown of VAT or other taxes
• Control number or QR code (generated by eTIMS)
• Timestamp of issue

As a business consultancy and recruitment firm, Janta regularly works with finance and admin departments to vet candidates who can handle such compliance-sensitive tasks. Don’t just look for general accountants—hire professionals who understand tax tech.

3. Businesses Must Issue ETRs in 2025

With the Finance Bill 2025 now active, any VAT-registered business—or one that crosses the income threshold—must issue ETR receipts.

This applies regardless of how you receive payments:

• M-Pesa Paybill or Till
• Bank transfer
• Online checkout systems

Janta can help connect you with vetted tech-savvy professionals who are already experienced with eTIMS, POS integrations, and compliant invoicing workflows.

4. M-Pesa Paybills Can Issue ETRs—If They’re Integrated

Since late 2024, all business Paybill and Till numbers are expected to be linked to eTIMS.

Here’s what’s needed:

• Registration with KRA
• Approved software integration
• Real-time tax data transmission

If you’re unsure whether your payment systems are integrated—or if your team lacks the technical know-how—Janta can recommend back-office experts and system auditors to ensure you’re aligned.

5. No ETRs? You Could Face Major Consequences

Ignoring ETR compliance doesn’t just expose you to KRA penalties—it could hurt your clients, suppliers, and even your funding prospects.

Without ETRs:

• You can’t claim VAT refunds
• KRA may impose penalties and interest
• Your income could be estimated and taxed based on bank or M-Pesa flows

This is why many of Janta’s clients now include ETR and compliance knowledge as a requirement in job descriptions, especially for roles in finance, operations, and procurement.

Conclusion: Compliance Is the New Competitive Edge

2025 isn’t the year to “wait and see” when it comes to tax compliance. ETR receipts aren’t just a legal requirement—they’re a business safeguard, helping you:

• Avoid audits
• Strengthen your financial reporting
• Build trust with clients and investors

At Janta, we don’t just help you hire—we help you hire for compliance, for leadership, and for growth.

Need help recruiting qualified finance and operations professionals who understand Kenya’s new tax landscape?
Talk to Janta today.

📧 info@jantakenya.com
📞 +254 726 061 607
🌐 www.jantakenya.com