20th-Dec-2025 • Mohamed Hassan • KRA Compliance
Welcome to the world of Kenyan business! As a small or medium enterprise (SME), you're probably juggling a multitude of tasks, from managing finances to keeping up with customer demands. Amidst this whirlwind, one aspect that should never be overlooked is KRA compliance. This article aims to simplify the process for you.
KRA, short for Kenya Revenue Authority, is responsible for the collection of taxes and management of customs and border control operations in Kenya. Compliance with their regulations is essential for any business to thrive.
The first step towards KRA compliance involves registering your SME. This can be done at the iTax platform (https://itax.kra.go.ke/). You'll need to provide necessary documents such as your ID, business registration certificate, and proof of business premises.
Once registered, you'll be assigned a Tax Compliance Certificate (TCC). This is your ticket to legal operations in Kenya. Among the taxes you'll be required to pay are Value Added Tax (VAT), Pay As You Earn (PAYE), and Withholding Tax (WHT).
If your annual turnover exceeds KES 5,000,000, you'll need to register for VAT. This involves charging an additional 16% on taxable supplies and remitting the amount to KRA.
For employment-related taxes, PAYE is payable by employers on behalf of their employees. The rate varies depending on the employee's monthly income. WHT, on the other hand, applies to payments made to contractors, suppliers, and professionals.
Regular tax filing is crucial for maintaining compliance. This can be done online via iTax or through a registered tax agent. The frequency depends on your VAT status – monthly for VAT-registered businesses, and annually for others.
Staying compliant isn't just about meeting deadlines; it's also about minimizing your tax burden. Consult a tax advisor to optimize your tax structure and ensure you're not overpaying.