16th-Dec-2025 • Mohamed Hassan • KRA
Welcome, small business owners! Today, we're diving into a crucial aspect of running your enterprise in Kenya: the Kenya Revenue Authority (KRA). KRA is the tax authority responsible for collecting and managing all taxes in our great nation. Let's explore how SMEs can navigate this essential process to ensure compliance and financial success.
Taxes are an inevitable part of doing business, but they also play a vital role in funding national development projects. By being tax compliant, you're not only fulfilling your civic duty, but you're also contributing to Kenya's growth and stability.
KRA offers various tax regimes suitable for different types of businesses. For SMEs, the Turnover Tax regime is often a practical choice. This system requires businesses with an annual turnover below KES 5 million to pay a flat rate of 1.5% on their gross monthly income.
Managing taxes can be time-consuming, but it doesn't have to be complicated. Lipabiz Technologies offers a business management platform and payments platform that integrates with KRA's e-filing system. This seamless integration allows you to file your tax returns quickly and accurately.
Consider the story of Mwangi, a small shop owner who embraced KRA compliance. By accurately reporting his income and paying his taxes on time, he gained access to government resources and support programs that helped him expand his business.
1. Register with KRA: Get started by registering your business with KRA as soon as possible. This will ensure you're eligible for any benefits and can stay up-to-date on tax requirements.
2. Stay Organized: Keep accurate records of your income, expenses, and sales to make tax filing easier and more efficient.
3. Utilize Technology: Consider using a business management platform like Lipabiz Technologies that can help you manage your taxes and streamline other aspects of your operations.