A fixed asset register is a detailed record of all the long-term tangible assets owned by your business — machinery, computers, vehicles, furniture, and equipment. Maintaining it properly has significant financial and tax implications.
1. Tax Deductions (Capital Allowances)
Under the Kenya Income Tax Act, you can deduct wear and tear allowances on qualifying assets. Rates vary:
- Computers and software: 30% per year (reducing balance)
- Machinery: 10–25% per year
- Motor vehicles: 25% per year
- Industrial buildings: 10% straight-line per year
A proper asset register ensures you claim every allowable deduction — legally reducing your tax liability.
2. Insurance Adequacy
Without knowing the current value of your assets, you risk being underinsured. An up-to-date register ensures your cover matches your exposure.
3. Audit Preparedness
During a statutory audit or KRA audit, auditors verify physical assets against the register. Missing or unrecorded assets are a red flag.
4. Disposal Decisions
Knowing the net book value of each asset helps you make informed decisions about when to replace, sell, or dispose of equipment — and the tax implications of each option.
Our accounting team sets up and maintains complete fixed asset registers for clients, ensuring every deduction is captured and every asset is properly controlled.
