Tension Hits Business Owners As Multiple KRA Tax Gadget Software Hitches

Multiple retail businesses have been struck by teething software problems in newly fitted mandatory Internet-enabled tax registers (ETRs), resulting in transaction delays and disruption of sales.

Many businesses, including some supermarkets, have been inconvenienced by software hitches and the low transaction capacity of the gadgets interlinked to the Kenya Revenue Authority (KRA) systems.

In some retail stores, the technical hitches are already often causing long queues of customers waiting to be served — a situation that could worsen ahead of the festive season shoppers throng outlets.

A leading retail chain warned its customers of “inconveniences” due to technical limitations of its ETR machines.

“Dear esteemed customers, this is to notify you that the new tax devices have a technical limitation of 95 lines per transaction,” the supermarket stated in a notice to its customers.

“This is a temporary solution while we update the device software. Sorry for any inconvenience experienced.”

Manufacturers and traders are expected to install the upgraded ETRs that will enable the KRA to receive real-time data on traders’ daily sales; an upgrade from the current manual tax registers that store sales data for scrutiny by the KRA after 30 days. Besides the upgraded ETR devices, traders are supposed to procure software.

The Retail Traders Association of Kenya chief executive Wambui Mbarire said businesses are in consultation with the KRA to address teething problems, including delays in integration with the authority’s system –Tax Invoice Management System.

 “It is still a work in progress and businesses are still trying it out,” she said.
“There are delays in interactions between KRA and suppliers.

It’s an expensive process because of the conversation to adapt to the way the machines operate and KRA systems.

“Business processes don’t fit in with the new system for example rebates by retailers or manufacturers and expatriates’ purchases.”

The taxman in September extended the deadline for businesses to acquire the ETRs for the second time amid a supply hitch that has delayed the migration.

The taxman has now given traders up to the end of November to acquire the ETRs, easing fears by manufacturers and traders who risked missing out on the deadline.

The extension of the deadline comes amid a lack of stocks from accredited suppliers that first forced the KRA to extend the deadline from July 31 to the end of this month.