Why Kenyans Will Receive Tax Invoices For Using Digital Taxi

A digital taxi-hailing app has announced that it will process and issue Electronic Tax Invoice Management System (eTIMS) invoices for all rides in Kenya.
In a notice to its drivers, the company revealed that it would handle the processing on behalf of the drivers. The company urged drivers to submit their KRA PIN certificates and accept a consent form, allowing it to handle the processing.
“As part of the Kenya Revenue Authority (KRA)’s efforts to digitize and streamline tax compliance, all persons providing goods or services, including transportation, are now required to issue e-TIMS-compliant invoices to their customers. This includes drivers who offer trips via platforms,” a notice by the company read in part.
This follows a KRA directive requiring all businesses to issue eTIMS certificates to clients for services provided. Under this rule, the drivers must provide passengers with an electronic tax invoice for every trip.
According to the company, this move will help ensure compliance with the law while maintaining an easy and seamless process for drivers.
“We understand that issuing tax invoices after every trip may feel challenging, especially due to the technical and time-related constraints. That’s why, with the KRA’s approval, [we] will use its technology to help drivers meet this legal requirement by issuing the e-TIMS-compliant invoices on your behalf,” it stated.
The digital company told all drivers to share their KRA PIN certificates and agree to the consent form through the driver app. However, it was not clear whether drivers who do not do this will be removed from the platform.
The KRA started eTIMS in 2023 to stop tax evasion and make sure all business expenses are recorded correctly. This new system lets the KRA check transactions in real-time.
This change also lets bigger companies create electronic invoices for the smaller businesses they work with. This helps stop them from faking sales numbers to avoid paying taxes.
“To get this help, we need you to do two quick things: Read and accept the consent form. This permits us to issue eTIMS invoices for you. Also, share your KRA PIN certificate through the driver app starting today. We need this to register you on the eTIMS platform,” the company told its drivers.
Under the VAT rules of 2020, all businesses that provide goods or services, including transport, must issue invoices through eTIMS.
The KRA had reported that only 120,000 businesses had signed up for eTIMS by June of last year. This was only 18.1 percent of the 663,000 companies on its records.
eTIMS requires businesses to give receipts or invoices to prove their expenses. This helps KRA keep an eye on transactions and find any problems.