23rd-Feb-2026 • Martin Mwangi • KRA Compliance
Navigating the world of taxes and KRA compliance can seem daunting for small and medium enterprises (SMEs) in Kenya, but fear not! This article aims to shed light on the essential aspects of meeting your tax obligations efficiently. By following these actionable steps, you'll find that maintaining KRA compliance is both simpler and less stressful than you might think.
First things first – understanding the importance of being compliant with the Kenyan Revenue Authority (KRA) is crucial. Non-compliance can result in penalties, interest charges, and even legal action, ultimately impacting your business's financial health and reputation.
The foundation of KRA compliance begins with registering your SME. The good news is that the process is straightforward and can be completed online through the eCitizen portal or in person at your local KRA office.
Once registered, you'll receive a Tax Identification Number (TIN), which serves as your unique tax reference. This number is required for various transactions with the KRA, making it an essential component of maintaining compliance.
If your business falls under the Value Added Tax (VAT) threshold (currently at KES 1.5 million monthly turnover), registration is mandatory. VAT-registered businesses charge their customers VAT and remit it to the KRA.
Regardless of your VAT status, you'll need to file annual tax returns (ITR) for both income tax and VAT if applicable. Lipabiz Technologies Ltd offers a user-friendly platform that streamlines this process for SMEs.
Payments can be made directly to the KRA through their eFiscal portal or via various banks. Monthly payments are typically due on the 20th of each month, with annual returns and any outstanding balances due by June 30th.
To keep up-to-date with changes in KRA regulations, follow their official social media channels or subscribe to email updates. Regularly review your records and ensure they are accurate and complete to minimize any issues during audits.
By being proactive about your KRA compliance, you'll be well-positioned for success as a small business owner in Kenya. Leverage technology platforms like Lipabiz Technologies Ltd to simplify and automate aspects of tax management, freeing up more time for growing your business.
