Legacy TIMS vs. eTIMS; Why Manufacturers in Kenya Must Rethink Their Electronic Invoicing Strategy

Introduction

In the manufacturing industry, efficiency, speed, and precision are non-negotiable. However, when it comes to tax compliance, many manufacturers in Kenya are still using outdated Type C TIMS devices that can’t keep pace with today’s compliance demands.

As the Kenya Revenue Authority (KRA) enforces full adoption of the Electronic Tax Invoice Management System (eTIMS), the need for manufacturers to rethink their tax compliance strategy has never been more urgent. This shift is no longer about ticking a regulatory box, it’s about safeguarding operational continuity, improving accuracy, and staying competitive.

Why Type C TIMS Devices Are Holding Manufacturers Back

When Type C TIMS devices were first rolled out, they provided an innovative path for ERP-using businesses to meet VAT compliance requirements. However, Kenya’s tax landscape has evolved significantly, and these legacy devices are increasingly failing to meet modern compliance and operational standards. For manufacturers, continuing to rely on outdated Type C TIMS hardware can lead to serious inefficiencies.

One major challenge is data synchronization. Many Type C TIMS devices struggle to integrate fully with ERP systems, causing mismatches between internal financial records and what appears on the KRA portal. This disconnect can result in delayed VAT refunds, surprise audits, and increased compliance risks. Even worse, these systems often require manual reconciliation of transactions. While intended to automate tax compliance, Type C devices frequently demand manual adjustments to invoices, especially when integration gaps occur. This is particularly disruptive in high-volume manufacturing environments where speed and accuracy are critical.

Unreliable connectivity is another setback. These devices depend heavily on both power and internet availability. Frequent downtimes caused by power outages or hardware issues can interrupt invoice transmission, disrupt cash flow, and damage supplier and customer relationships. Lastly, Type C TIMS infrastructure lacks scalability. As manufacturers grow and diversify their operations, these devices are unable to handle large volumes of transactions or adapt to new business models. This limits reporting capabilities and makes compliance harder to manage.

Why eTIMS Is the Smarter Move for Manufacturers

Unlike legacy hardware-based systems, the eTIMS platform presents a future-proof alternative tailored to the needs of modern manufacturers in Kenya. eTIMS isn’t just about regulatory compliance, it’s about operational efficiency, scalability, and strategic advantage. The most effective mitigation strategy is to fully embrace and transition to eTIMS. The eTIMS platform is designed to be more reliable and has fewer transmission challenges compared to TIMS devices. This shift helps centralize compliance efforts and reduce system-related discrepancies.

With eTIMS, manufacturers benefit from seamless ERP integration through secure APIs. This allows businesses to generate invoices from a centralized, automated workflow eliminating the need for duplicate data entry and reducing the risk of errors. Being cloud-based, eTIMS eliminates the physical limitations of traditional devices. It offers reliable infrastructure that ensures real-time synchronization with the KRA portal even during peak activity periods. This reduces the risk of downtime, protects against data loss, and ensures business continuity.

eTIMS also supports batch invoice processing, allowing manufacturers to upload CSV files and automate bulk invoicing, saving finance teams valuable time and streamlining compliance. Additionally, a key advantage of eTIMS is its support for reverse invoicing. As tax regulations now require manufacturers to issue invoices on behalf of smaller, non-eTIMS suppliers, the system simplifies this with ready-to-use templates and centralized workflows.

Finally, eTIMS is audit-ready by design. It validates every invoice against KRA’s guidelines, helping businesses avoid errors and stay fully compliant year-round. When tax season arrives, manufacturers no longer scramble to reconcile records because the system has already done the heavy lifting.

The Risks of Clinging to TIMS devices

While some manufacturers may be hesitant to overhaul their current tax systems, continuing to rely on legacy TIMS infrastructure is becoming an increasingly costly risk. Under Kenya's evolving tax compliance framework, only eTIMS-compliant invoices are recognized by the Kenya Revenue Authority (KRA) for tax purposes. This means that any invoices generated through outdated systems may lead to disallowed expense claims, directly affecting a business’s bottom line.

Additionally, non-compliance with eTIMS requirements can attract hefty financial penalties under the Tax Procedures Act, alongside heightened scrutiny and audits from KRA. Beyond the financial implications, manufacturers also face operational delays, increased administrative workload, and reputational damage due to persistent invoice errors and late submissions.

These issues can disrupt relationships with suppliers and clients, undermining trust and reliability in a competitive manufacturing environment. For businesses that want to maintain efficiency, accuracy, and compliance, transitioning to modern e-invoicing solutions like eTIMS is not just advisable,it’s essential.

What Now?

For manufacturers in Kenya, the shift from legacy TIMS devices to eTIMS-compliant solutions is no longer a question of if, but when. With the tax landscape evolving rapidly and the Kenya Revenue Authority (KRA) enforcing stricter compliance requirements, sticking with outdated systems only increases exposure to risk. Transitioning to a modern, scalable eTIMS solution like DigiTax is essential for maintaining tax compliance, streamlining operations, and future-proofing your business. By adopting DigiTax, manufacturers can eliminate manual inefficiencies, reduce reconciliation errors, and ensure real-time invoice transmission to KRA—all while aligning with Kenya’s digital tax reforms. The sooner manufacturers make the switch, the sooner they can improve accuracy, avoid penalties, and stay ahead in an increasingly regulated and competitive environment.

DigiTax for Manufacturers: A Purpose-Built eTIMS Solution

Kenya’s manufacturing sector demands efficiency, accuracy, and compliance at every stage of operations. DigiTax delivers exactly that with a streamlined, fully integrated eTIMS e-invoicing solution tailored to meet the unique needs of manufacturers.

With unified API integration, manufacturers can seamlessly generate and transmit invoices whether they're using an ERP, POS, or custom-built system. For businesses that deal with high-volume transactions, DigiTax supports CSV uploads and automated batch invoicing, significantly cutting down time and effort. Each invoice is eTIMS-compliant and brandable, meaning your business retains its identity while meeting all statutory requirements.

From SMEs to large industrial operations, DigiTax provides flexible tools that grow with your business. Whether you process 50 or 5,000 invoices a day, the platform is built to handle scale without compromising speed or accuracy. And with end-to-end eTIMS compliance, manufacturers gain full visibility into their tax obligations, from invoice generation and real-time submission to syncing with KRA.

Speak to one of our experts by contacting us through: Email info@namiri.tech or call/Whatsapp 0112685368