Following an increase in the number of fictitious tax claims, the Kenya Revenue Authority (KRA), has instructed all petrol stations to adopt the electronic Tax Invoice Management System (eTIMS), from June 2025.
Going forward, fuel vendors across the country will need to link their dispensers with point-of-sale (POS) terminals that can relay transaction data directly to the eTIMS server, for them to transact.
With dispenser activity relayed directly to the eTIMs server, KRA will be able to track Value Added Tax (VAT) claims from motorists in real-time, thus blocking claims unsupported by actual receipts.
Motorists, particularly those fueling fleet or commercial vehicles, will provide their KRA Personal Identification Number (PIN) at the point of fueling, to generate valid invoices, essential for claiming input VAT.
The KRA initiative is part of a broader effort to not only improve tax compliance by bringing fuel sales under direct monitoring, but also to support more transparent, data-driven operations across this economy.
In anticipation of the sector-wide digital transition, the revenue authority has accredited several point-of-sale technology providers, to support fuel station operators with the required integration.
While the new directive introduces additional compliance obligations for fuel vendors, analysts see it as an opportunity to enhance long-term business competitiveness, in an increasingly digitised economy.
For many entrepreneurs, especially those managing multiple petrol stations, manual accounting makes it difficult to track daily sales, monitor inventory, and assess performance accurately.
Fuel stations that integrate technology will be better positioned to streamline operations, eliminate discrepancies, gain insights through real-time data analytics, improve customer service and focus on growth.
To meet KRA’s directive, fuel retailers must now engage certified technology providers capable of delivering infrastructure that supports seamless eTIMS integration with existing fuel pump systems.
The POS systems provided must be able to communicate directly with dispensers, process payments instantly, and ensure all transaction records are securely and consistently relayed to KRA’s servers.
Beyond compliance, the systems should also enhance operational efficiency by providing multiple payment, remote monitoring, stock tracking, and customised reporting tools for internal performance evaluation.
As the rollout continues, fuel retailers are being urged to not only adopt the necessary systems but also to train their teams on how to use the new technology effectively.
Staying up to date with any changes in compliance guidelines or system updates from KRA will also be critical to ensuring continuous alignment with regulatory expectations.
Ultimately, the implementation of the KRA directive will not only enable fuel station owners and operators to be tax compliant, but also to streamline operations and minimise revenue leakage through digitisation.
The writer is the Chief Commercial Officer, Pesapal
