Fuel stations across the country that are yet to adopt the eTIMS invoicing system have until December 31, 2025, to comply or face enforcement action, the Kenya Revenue Authority (KRA) has warned.

The system, which went live for fuel retailers earlier this year, connects every sale to KRA in real time, ensuring both compliance and accurate tax collection. It is designed to streamline tax reporting and prevent revenue leakages, making operations more transparent and efficient for both retailers and the government.

The authority now says the original June 30, 2025, deadline for implementation has already lapsed, urging retailers to act swiftly to avoid penalties.

“Retailers who fail to comply by 31st December, 2025, will face enforcement measures as provided for under the law. KRA remains committed to supporting and facilitating all fuel retailers in meeting these requirements. We also extend our appreciation to the outlets that have already complied with the electronic tax invoicing mandate,” the authority said.

The eTIMS Fuel Station System is tailored for the fuel sector, enabling seamless, real-time invoicing for every transaction. It integrates with KRA through forecourt controllers and existing point-of-sale systems, ensuring accuracy and efficiency in tax reporting.

The system was proposed and launched in 2024, with implementation beginning earlier this year. Speaking on June 2, 2025, Digitax CEO Caine Wanjau explained that eTIMS is designed to automate the issuance and reporting of tax invoices in real time.

“By integrating directly with point-of-sale systems and pump controllers, it ensures that every litre sold, every shilling transacted, and every tax obligation is transparently recorded,” Wanjau said.

“This is not about punitive oversight. It is about bringing structure and integrity to a high-volume industry that, for too long, has relied on fragmented systems and manual reconciliations.”

Established in 1995 under Chapter 469 of the Laws of Kenya, KRA is charged with collecting revenue on behalf of the government. Under the new system, each fuel transaction is recorded in real time and sent directly to KRA’s servers. Drivers now receive valid electronic invoices after fueling, which are particularly necessary for fleet operators and transport companies claiming input VAT.

The rollout has seen large petroleum retailers such as Total, Shell and Rubis largely integrate their systems with KRA, with machines already dispensing integrated receipts. Smaller independent dealers, however, face challenges meeting the additional costs of the system.

KRA has provided support mechanisms to ease the transition, including access to technical assistance and integration guidance. Fuel retailers are encouraged to consult KRA-accredited system integrators or reach out directly to the authority’s eTIMS support team to ensure smooth onboarding.

The rollout comes at a time when the government is intensifying its crackdown on tax evasion and working to expand the tax base through enhanced technology adoption. The petroleum sector, which plays a critical role in the national economy, has been identified as one of the key industries requiring tighter monitoring and accountability mechanisms.

This digital shift mirrors similar systems already in use globally, where real-time tax invoicing in fuel transactions has led to increased efficiency and revenue gains.

With the deadline fast approaching, KRA is urging stakeholders in the fuel industry to act promptly to avoid last-minute disruptions and ensure a smooth compliance process.

Recently, Kenya has been making headlines for its tax compliance measures aimed to accelerating the use of electronically generated tax invoices, tackling tax evasion and improving revenue collection. KRA also intends to use technologies such as Artificial Intelligence (AI) and Machine Learning to analyse massive amounts of data and detect patterns of tax evasion.