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The speaker explains how to create invoices using an invoice generator. They provide a link to the tool and demonstrate how to fill in the necessary details, such as the sender, recipient, date, description of services/products, and rates in dollars. They mention the option to convert the currency to Kenyan shillings. In the example provided, two services are listed with their respective rates, resulting in a total amount due of 70,000. It is noted that Kenyan services are generally not charged with VAT.