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KRA Tax & Compliance: A Complete Guide for Kenyan Businesses

Demystify Kenya's tax stack. Walk through PIN registration, iTax navigation, VAT, PAYE, Turnover Tax, instalment tax, and the filing calendar that keeps you penalty-free.

~70 min total Intermediate6 steps
Start with Step 1
Disclaimer

The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.

What you'll have

  • Confidence navigating iTax end-to-end
  • A correct understanding of which taxes apply to your business
  • A monthly + annual filing calendar with every deadline
  • Knowledge of how to fix late filings, amend returns, and apply for waivers

Steps

  1. 01
    Understand the Kenyan tax stack

    Before you file anything, know which taxes apply to your size, sector, and structure.

    ~10 min
  2. 02
    iTax basics: log in, navigate, fix common errors

    iTax is KRA's online portal — every return, payment, and certificate flows through it. Master the navigation and you've solved 80% of compliance friction.

    ~10 min
  3. 03
    VAT: when to register, how to file, how to claim

    VAT is the most-audited tax in Kenya. Get the mechanics right and you'll sleep at night.

    ~15 min
  4. 04
    Payroll: PAYE, NSSF, SHIF, Housing Levy

    Every employer in Kenya runs a four-stack payroll. Miss one and the penalties stack fast.

    ~15 min
  5. 05
    Corporate tax, instalments, and year-end

    Resident companies pay 30% on profits — but KRA wants the money in quarterly instalments, not as one lump sum.

    ~10 min
  6. 06
    Your annual compliance calendar

    Print this and stick it on the wall.

    ~5 min
Why this matters

KRA non-compliance is the single biggest reason Kenyan SMEs lose loans, contracts, and licences. Penalties compound monthly, and a Tax Compliance Certificate is required for almost every government tender, bank facility, and large customer onboarding. Getting tax obligations right from day one is dramatically cheaper than cleaning up arrears two years later — and it usually takes less time than founders fear.

Who this is for
  • New business owners setting up KRA obligations correctly
  • Existing businesses cleaning up non-compliance or arrears
  • Finance leads, bookkeepers, and accountants getting onboarded
  • Anyone applying for a loan, tender, or contract that requires a TCC
Before you start
  • Active iTax credentials (business and personal PINs)
  • Last 12 months of bank statements and sales records
  • Copies of supplier invoices for VAT input claims
  • Employee details if PAYE / NSSF / SHIF apply

Frequently asked

What's the difference between TOT and VAT?+

Turnover Tax (TOT) is 1.5% of gross monthly sales for businesses with KES 1M–25M annual turnover. VAT is 16% charged on sales, recoverable on inputs, and becomes compulsory once turnover hits KES 5M.

How do I get a Tax Compliance Certificate?+

Apply on iTax once all returns are filed and arrears cleared. Issued in 1–5 working days; valid for 12 months.

What if I have KRA arrears I can't pay?+

Apply for a payment plan via iTax. KRA routinely approves 6–24 month plans for SMEs with credible cash flow. Ignoring arrears is far more expensive — penalties compound monthly.