Caine Wanjau, CEO, DigiTax Kenya
Few sectors touch the daily lives of Kenyans quite like the fuel industry. From powering matatus that transport millions to keeping factories running and homes warm, the oil marketing industry is the lifeblood of our modern economy.
With more than 2,000 active retail fuel stations across the country and tens of billions transacted annually, this is not just an economic powerhouse—it is a critical pillar of national infrastructure and public trust.
That trust, however, must now be matched by transparency.
The Kenya Revenue Authority’s Electronic Tax Invoice Management System (eTIMS) rollout marks a decisive step towards a fairer, more accountable tax environment. For oil marketers, it represents more than a compliance mandate—it’s a call to modernise, digitise and ultimately, transform operations at the forecourt.
As a business leader in the digital compliance space, I have witnessed firsthand the resistance that sometimes accompanies regulatory shifts. But let me be clear: the future of fuel retailing in Kenya is digital, and compliance is not optional, it is foundational.
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.
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.
Importantly, this shift now extends to all players, whether you are a large oil marketer with a national footprint or an independent dealer operating a single pump. Compliance does not discriminate. Every fuel transaction, regardless of cash, card, or mobile payment, must now generate an eTIMS compliant invoice, complete with VAT details, quantities, and, where applicable, customer PINs.
There are specific risks for those who delay adoption. For instance, under the amended Tax Procedures Act, oil marketers must now issue reverse invoices on behalf of small traders they transact with, those earning less than Sh5 million annually. Ignoring this requirement could lead to penalties and disallowed expenses during tax audits.
Moreover, KRA will only recognise expenses supported by eTIMS compliant documentation. This means that if your fuel transporter, maintenance partner, or supplier isn’t compliant, neither is your tax deduction.
The writing is on the wall: compliance is not just about ticking boxes, it directly impacts the bottom line.
At DigiTax, we view this transition not as a burden but as an opportunity to build a more resilient, data-driven industry. That’s why we’ve invested in building tailored solutions for oil marketers, designed to integrate seamlessly with existing pump systems and POS terminals.
With DigiTax, fuel stations can generate compliant tax invoices in real time, even as they upgrade their infrastructure. Our Android-based POS app and dashboard ensure business continuity during the transition, while our reverse invoicing and expense compliance features help businesses meet every KRA requirement, without losing focus on their core operations.
The best part? The insights generated from this level of digitisation give oil marketers unprecedented visibility into their sales, margins and performance across sites. Compliance, therefore, becomes a gateway to better decision-making, improved cash flow and increased operational efficiency.
For compliance to take root, we must see it not just as an individual responsibility but a collective one. Franchise networks must ensure that third-party dealers are equally compliant. Technology providers must offer integration ready solutions. Regulators must offer support and clarity. And as industry leaders, we must lean in and guide our teams through the change.
The oil marketing industry has always demonstrated remarkable resilience and adaptability. Whether navigating global price shocks, local supply disruptions, or regulatory shifts, we have always found a way forward. The eTIMS rollout is no different. But this time, we are not just adapting, we are future proofing.
Compliance is not the end goal; it is the starting point of a smarter, more transparent and more competitive fuel industry. As we align with KRA’s vision of a digitised tax ecosystem, let us remember: integrity and innovation go hand in hand.
At DigiTax, we are committed to walking this journey with fuel marketers across the country. Together, we can turn compliance into a catalyst for growth at the pump, at the POS, and beyond.
The writer is CEO, DigiTax Kenya
