Nairobi, Jan. 8 -- Kenya's transition to electronic tax administration is now an operational reality for businesses. As the Electronic Tax Invoice Management System (eTIMS) becomes embedded in commerce, one of its most consequential features is reverse invoicing.

Reverse invoicing is emerging as a central policy tool in Kenya's attempt to reconcile formal taxation with the realities of a largely informal economy.

It allows the buyer to issue a tax invoice for goods or services received. The shift responds to a structural challenge that has constrained tax compliance.

A huge share of Kenya's supply base is made up of small traders, farmers and micro-enterprises that lack the financial systems, technology and accounting practices require...