14th-Nov-2025 • Sheldon Cooper • SME Tax Compliance
Navigating tax compliance as a Small and Medium Enterprise (SME) in Kenya can be daunting. However, understanding the process is vital to your business's financial health and longevity. Here's a step-by-step guide to simplify SME tax compliance in Kenya.
The first step towards complying with Kenyan tax laws is registering your business with the Kenya Revenue Authority (KRA). This registration process will provide you with a Tax Identification Number (TIN), which is crucial for all tax-related activities.
Each SME's tax obligations depend on the business structure and its specific activities. For example, sole proprietorships, partnerships, and limited liability companies are subject to Personal Income Tax (PIT). Meanwhile, VAT registration is mandatory if your annual turnover exceeds KES 5 million.
Proper record-keeping is essential for accurate tax calculations and filing. This includes maintaining records of income, expenses, invoices, receipts, and VAT certificates.
If your business turnover surpasses KES 5 million annually, registering for Value-Added Tax (VAT) is mandatory. This registration process can be done online via the iTax portal.
Once you have calculated your tax liability, file your returns on a monthly or annual basis, depending on your business's size and tax obligations. The iTax portal provides an efficient way to submit your returns online.
After filing your returns, pay the calculated taxes through various approved payment methods available on the iTax portal or at KRA offices nationwide.
If managing tax compliance becomes too complex, consider seeking advice from a certified accountant or tax advisor. They can provide valuable insights and ensure your business remains compliant with Kenyan tax laws.