KRA Statement on eTIMS Rollout In Fuel Stations Systems

The Kenya Revenue Authority (KRA) continues to champion the modernization of tax administration through the adoption of electronic invoicing and the simplification of tax declaration processes. Since 2021, VAT-registered businesses have been required to generate electronic tax invoices using the upgraded tax registers. This marked a pivotal shift toward enhanced compliance and transparency. In 2023, KRA extended the scope of electronic invoicing through the introduction of a complementary software-based approach via Electronic Tax Invoice Management System (eTIMS). This evolution broadened the coverage to include all persons in business, irrespective of VAT registration status. Under the new framework, a compliant electronic tax invoice must now accompany every sale regardless of the value.

The petroleum sector, known for its complex and high-volume operations, was significantly impacted by the transformation above. In response to the unique needs of the industry, KRA officially launched the eTIMS Fuel Station System, designed to streamline operations and address compliance challenges previously encountered with Electronic Tax Registers (ETRs). This solution addresses the challenges faced in the use of the traditional ETRs that posed inefficiencies in fuel dispensing environments, resulting in operational disruptions and instances of non-compliance with electronic invoicing for every sale. The new system allows for real-time, seamless invoicing through integration with a fuel station's forecourt controller, computerized sales system, fuel management system, point of sale (POS), and/or printer, depending on the station's automation level. This integration ensures that every transaction is captured electronically and transmitted to KRA in compliance with the law.

Fuel stations stand to gain significantly from adopting the eTIMS system, with key benefits including:

• Increased efficiency through automation: Technology replaces manual processes, allowing for real-time transaction recording and streamlined workflows.
• Faster Service Delivery: Integration reduces delays at the forecourt, enhancing customer experience.
• Enhanced System Functionality: Compatibility with software tools like PIN capture, mobile payment platforms and loyalty programs supports more robust business operations.
• Improved accuracy and reconciliation: Electronic invoicing ensures accurate records, reducing errors and disputes.
• Simplified Tax Compliance: Automated invoicing feeds directly into the recently rolled out simplified VAT returns, minimizing manual effort and enhancing accuracy.
• Real-Time Validation: Immediate verification of receipts facilitates faster supplier payments and processing of VAT refund claims.

Recognizing the sector's complexity, KRA has adopted a consultative and phased implementation approach, working closely with Oil Marketing Companies (OMCs), independent fuel retailers and industry associations. Through a series of stakeholder engagements, KRA continuously addresses technical, operational and compliance concerns, fostering a shared understanding of the system's requirements. During the pilot phase, volunteer fuel stations were enlisted for integration, with site visits conducted to assess technical configurations, user compliance, and operational feedback. Lessons learned from the pilot phase informed system enhancements and stakeholder support strategies that will be applicable in the transition to full roll out.

As of April 2025, five (5) third-party eTIMS integrators were certified, with several fuel stations already successfully integrated and many others progressing through various on boarding stages. KRA has set 30th June 2025 as the deadline for all fuel stations to complete their integration with eTIMS. We encourage all fuel stations to on board eTIMS to avoid enforcement action.

KRA remains dedicated to assist fuel sector players with training, technical assistance and open lines of communication. Our aim is to simplify tax compliance for the sector. Fuel stations seeking to comply may choose between the following options:

a) Self-integration: Suitable for stations with in-house technical capacity to develop and manage system interfaces.

b) Third-party integration: Stations may engage a certified integrator from the list available on the KRA website. This list is regularly updated as new integrators are certified.

KRA is committed to supporting the petroleum industry throughout this transition. Through shared responsibility and collaboration, we aim to build a tax environment that is efficient, transparent and responsive to the realities of modern business. Let us work together to ensure that every drop counts-not just in fuelling the nation, but in building a compliant and digitally empowered economy.