5th-Feb-2026 • Mohamed Hassan • KRA Compliance
In today's dynamic business landscape, staying compliant with the Kenya Revenue Authority (KRA) is crucial for small and medium enterprises (SMEs). This article offers a simplified guide to help you navigate KRA compliance, ensuring your business remains not only legal but also thriving.
Compliance with KRA regulations safeguards your business from penalties and legal repercussions. It fosters trust among customers, suppliers, and partners, ultimately contributing to a stronger financial position.
Start by registering your business with the KRA. You'll need a Tax Identification Number (TIN) for this purpose. Lipabiz can assist you in obtaining your TIN quickly and efficiently.
Regularly file tax returns to avoid penalties and keep your business running smoothly. Lipabiz's platform automates this process, making it hassle-free for you.
Timely payment of taxes is essential. Delays can lead to fines and interest charges. Use the KRA iTax platform or Lipabiz's integrated payment solution to ensure prompt payments.
If your annual turnover exceeds KES 5 million, you are required to register for Value Added Tax (VAT). Failure to comply can result in heavy fines. Lipabiz's platform helps you keep track of VAT-related transactions and submit returns on time.
SME owners are required to file annual income tax returns. To simplify this process, consider using a business management platform like Lipabiz that automates income tax return calculations and submissions.
Regulations change frequently, so it's important to stay updated. Follow KRA announcements on their official website or sign up for updates from Lipabiz. By staying informed, you can adapt quickly and maintain compliance effortlessly.
