Knowledge base
Kuza ERP glossary for Kenyan SMEs
Short definitions you can cite, plus longer notes with Kenya and SME context. Link through to related hubs when you want full guides. For product questions, email hello@kuzaerp.com or book a WhatsApp demo.
Use precise terms when evaluating ERP, eTIMS, inventory, and POS for Kenyan SMEs.
Terms
| Term | Definition |
|---|---|
| Agrovet | A retail or distribution business selling agricultural and veterinary inputs such as feeds, chemicals, and animal health products. |
| Bill of materials | A structured list of components and quantities required to make a finished product or recipe-style item. |
| Buyer-initiated invoice | An electronic tax invoice flow where the buyer side initiates the invoice under eTIMS rules, rather than the classic seller-only issue pattern. |
| Chart of accounts | The structured list of ledger accounts used to classify financial transactions for reporting. |
| Cloud ERP | ERP software hosted by the vendor and accessed over the internet on a subscription, without company-owned application servers. |
| Credit note | A document that reduces the amount a customer owes—or adjusts a prior invoice—commonly used for returns, errors, or allowances. |
| CRM | Customer Relationship Management—software and process for tracking leads, customers, follow-ups, and sales history. |
| Digital transformation | The shift from paper and disconnected tools to integrated digital processes that change how a business operates and decides. |
| ERP | Enterprise Resource Planning software that connects sales, inventory, finance, and operations in one system so teams share live data. |
| eTIMS | Kenya Revenue Authority’s electronic Tax Invoice Management System framework for compliant electronic tax invoices. |
| FIFO | First In, First Out—an inventory costing and issuing method that assumes older stock is sold or used before newer stock. |
| Inventory turnover | A measure of how many times inventory is sold and replaced over a period—higher often means faster-moving stock. |
| KRA PIN | Kenya Revenue Authority Personal Identification Number—the tax identifier for individuals and entities dealing with KRA. |
| Lead time | The elapsed time between ordering goods and having them available to sell or use. |
| Multi-tenant | A software architecture where one application instance serves many isolated customer workspaces (tenants). |
| OSCU | Online Sales Control Unit—an element of Kenya’s electronic invoicing ecosystem used in KRA eTIMS-related setups. |
| Payroll | The process and systems for calculating employee pay, statutory deductions, and payment runs. |
| POS | Point of sale—the till system that captures retail sales, payments, and receipts at the counter. |
| Purchase order | A formal request to a supplier specifying items, quantities, and terms before goods are received. |
| Reorder point | The stock quantity at which you should place a new purchase so you do not stock out during supplier lead time. |
| SaaS | Software as a Service—software delivered on subscription over the internet, with the vendor hosting and updating the application. |
| SACCO | Savings and Credit Cooperative Organisation—a member-owned financial cooperative common in Kenya. |
| SKU | Stock Keeping Unit—a unique code identifying a sellable product variant for inventory and sales tracking. |
| VAT | Value Added Tax—a consumption tax charged on eligible supplies, with rules and rates set by Kenyan tax law. |
| Warehouse | A storage location—room, store, or depot—where inventory is received, held, and issued to sales or production. |
Last updated: 2026-07-25