The Kenya Revenue Authority (KRA) expects double-digit growth in tax revenues from the petroleum sector on full onboarding of fuel stations onto the Electronic Tax Invoice Management System (eTIMS) fuel module.
The revenue agency announced this week that it has roped more than 500 fuel retailers onto eTIMS since last December, deepening real-time oversight of transactions.
The hooked stations account for about 16 percent of the national fuel retailers’ network, signalling initial progress in driving compliance in a bid to reduce revenue leakages and underreporting in the petroleum value chain.
“The system integrates seamlessly with import records and the VAT (value-added tax) administration framework, enabling automatic reconciliation of physical fuel volumes against declared sales volumes and corresponding tax positions,” KRA acting Deputy Commissioner for the Large Taxpayers’ Office, Ezekiel Obura, said in a press statement.
The eTIMS fuel module, the KRA says, provides end-to-end visibility of petroleum transactions — from importation and storage to distribution and final retail sale. This, the revenue agency adds, will strengthen VAT accuracy and ensure equity in tax compliance across the sector.
The push comes as KRA moves to tighten eTIMS enforcement across the wider business community.
Early this month, the authority announced plans to introduce a Merchant Tax Compliance Certificate that integrates Electronic Tax Invoice Management System compliance.
Unlike the current Tax Compliance Certificate, which primarily tracks return filing and payments, the new certificate will require businesses to demonstrate full adoption of eTIMS, effectively nudging firms to ensure all expenses are backed by valid electronic tax invoices.
Businesses require tax compliance certificates when bidding for government tenders, undertaking customs clearance, and obtaining or renewing licences. Individuals also need the certificates when applying for government jobs, while foreign nationals must present them when applying for or renewing work permits.
KRA Commissioner General Humphrey Wattanga said the initiative is aimed at promoting fairness and consistent compliance.
“A level playing field can only be achieved when all businesses comply with tax obligations and statutory levies,” Mr Wattanga told participants at the American Chamber of Commerce Outlook Forum 2026.
“It is for this reason that KRA is rolling out initiatives such as the Merchant Tax Compliance Certificate to promote consistent and strong compliance across the business community.”
Earlier, KRA disclosed that monthly domestic VAT collections have climbed to between Sh28 billion and Sh30 billion, up from Sh20 billion, lifted by the requirement that all supply transactions be accompanied by eTIMS-generated tax invoices.
