16th-Nov-2025 • Reddington Onyango • SME Tax Compliance
In the dynamic world of business, understanding SME tax compliance is paramount. As a small business owner in Kenya, you're not only creating opportunities but also contributing to the nation's economy. To maintain a healthy financial landscape, it's essential to stay compliant with tax regulations.
Firstly, let's understand why tax compliance matters. Compliance ensures that your business is legally recognized and trusted by both customers and authorities. It also paves the way for accessing loans, grants, and other financial support opportunities.
According to the Kenya Revenue Authority (KRA), as of 2021, only about 36% of registered SMEs were compliant with tax obligations. This leaves a significant portion of businesses at risk of penalties or even closure.
The first step towards tax compliance is registering your business for a TIN. This unique number is required for all tax-related transactions with KRA, including filing returns and making payments.
To apply for a TIN, visit the KRA eCitizen portal or any of their offices nationwide. You'll need your business registration certificate, National ID, and other relevant documents.
Depending on your business type, you may be subject to VAT, PAYE, or withholding tax. Consult the KRA website for detailed information about each tax type and their respective rates.
For instance, if your annual turnover exceeds KES 5 million, you'll need to register for Value Added Tax (VAT). This requires regular filing of VAT returns and remittance of the collected VAT to KRA.
Staying compliant doesn't have to be a headache. With Lipabiz Technologies Ltd, a business management and payments platform, you can simplify your financial operations. Our platform helps automate tax calculations, invoicing, and payment processing, ensuring accurate records and timely compliance.
By streamlining these processes, you'll save valuable time and resources, allowing you to focus on growing your business. Start your journey towards effortless SME tax compliance with Lipabiz today!