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Kenya to Monitor Fuel Usage of Motorists

October 25, 2024

Kenya to monitor fuel usage of motorists via electronic tax system, it’s a new system to monitor fuel consumption by linking its electronic tax invoice management system (eTIMS) with fuel stations across the country.

This system, which could be launched in June 2025, aims to promote the adoption of electronically generated tax invoices, tackle tax evasion and improve revenue.

Per Business Daily Africa, motorists will receive an eTIMS receipt or electronic invoice with each fuel purchase. To generate these receipts, drivers will be required to input their KRA personal identification numbers (PINs) for every petroleum transaction.

This integration will provide the authority with real-time access to transactions at the fuel pumps, enabling them to prevent false VAT claims, track fuel stations’ sales, and analyse motorists’ spending patterns.

“There is a fuel forecourt solution that we are already piloting among fuel stations. Basically, this solution provides for a situation where eTIMS is integrated at the pump linking the fuel dispenser with the point of sale,” Hakamba Wangwe, the KRA’s chief manager in charge of eTims was quoted.

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.

Small business owners to generate electronic tax invoices via WhatsApp

As part of the measures, the authority plans to introduce a WhatsApp chatbot allowing small business owners to generate electronic tax invoices on the messaging platform. This aims to increase voluntary tax compliance among micro, small, and medium-sized businesses (MSMEs), making tax invoicing easier with the eTIMS.

The government announced that by December 25, 2024, M-PESA Paybills and Till numbers will serve as virtual Electronic Tax Registers (ETRs). Integrating mobile money transactions with tax systems is intended to enhance transparency and efficiency in tax collection.

The Kenya Revenue Authority (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.

In the latest development, the Communications Authority of Kenya (CA) has introduced new regulations, effective January 1, 2025, to ensure the integrity and tax compliance of mobile devices.

The regulations, which will apply to all stakeholders, including local assemblers, importers, distributors, and mobile network operators, seek to ensure that only tax-compliant devices are sold and linked to Kenyan networks.

Mobile phone importers and local device assemblies must now upload each device’s International Mobile Equipment Identity (IMEI) number to a portal provided by the Kenya Revenue Authority.

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