Petrol stations lose millions annually, not from theft, but from poor recordkeeping and inaccurate tax filings. For years, station owners have relied on handwritten records, cashbooks, and manual receipts to track sales and file taxes.
According to a 2023 report by the African Energy Chamber, nearly 60% of fuel station operators in East Africa struggle to meet monthly tax obligations due to manual data collection
As governments digitize tax collection systems, petrol station operators are under increased scrutiny to comply. Station owners, accountants, and tax authorities alike are calling for smarter, more reliable systems that ensure transparency and accuracy.
Kenya’s Electronic Tax Invoice Mandate
The Kenyan government rolled out the Electronic Tax Invoice Management System (e-TIMS) to digitize and streamline tax reporting. Under this mandate, all businesses—regardless of size or sector, must issue electronic tax invoices that are transmitted in real time to the Kenya Revenue Authority (KRA). Initially targeted at VAT-registered businesses with a compliance deadline of November 30, 2022, the regulation expanded on February 1, 2023, to include a software-based alternative: e-TIMS.
In a further push for nationwide adoption, a public notice issued by the KRA in November 2023 extended the requirement to all taxpayers, including those not registered for VAT. This directive, effective June 1, 2023, meant that only invoices generated through TIMS or e-TIMS are recognized for input VAT claims. Industries like fuel retail, which handle high transaction volumes and are tightly regulated, are required to comply without exception. This broad scope underscores the need for automated, compliant systems like Pesapal FMS, which helps businesses in all sectors, fuel stations included—stay tax-compliant, simplify reporting, and reduce exposure to penalties.
How Pesapal Forecourt Management System (FMS) Helps
The Pesapal FMS is purpose-built to help fuel station operators automate their operations, manage both wet and dry stock sales, comply with tax regulations, and enhance financial accuracy
It streamlines three key processes:
Pesapal FMS is fully compliant with Kenya’s e-TIMS requirements. It syncs sales records automatically with KRA servers, removing the need for manual uploads or last-minute reconciliations during tax season. This integration not only helps you avoid penalties and audit issues but also means you don’t need to hire extra staff to handle tax compliance. The system does the heavy lifting for you.
Pesapal FMS captures transactions directly from fuel pumps and payment terminals in real time. Every sale is automatically recorded with a timestamp, payment method, and amount—eliminating guesswork and human error. This level of precision ensures all revenue is accounted for and makes your tax returns less likely to raise red flags. Station owners can view live sales across all nozzles and shifts, ensuring full traceability. The result is dependable tax declarations and reduced administrative stress.
Traditionally, reconciling daily sales involved comparing paper receipts with meter readings—a time-consuming process prone to manipulation. With FMS, reconciliation is automated. The system cross-checks pump data against electronic payments and POS records in real time. This automation catches anomalies early, ensures every shilling is tracked, and reduces the potential for internal fraud. What once took hours now takes minutes—freeing up time for better business oversight.
Beyond Compliance: Why You Need the Pesapal FMS
Adopting the Pesapal Forecourt Management System is more than a legal requirement, it’s a smart business decision. By ensuring accurate tax reporting and seamless e-TIMS integration, you demonstrate accountability to regulators, suppliers, and customers alike.
Additional benefits include:
Ready to Simplify Your Tax Reporting?
Are you e-TIMS compliant? If not, now is the time to act. Our Forecourt Management System is designed to take the complexity out of compliance while giving you greater control over your business finances.
Talk to us today to learn how our system can help you streamline operations, reduce risk, and grow sustainably.
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