Every registered business in Kenya has ongoing obligations with the Kenya Revenue Authority (KRA). Understanding what you owe, when it's due, and how to file correctly can save your business from crippling penalties.
Key Taxes for Small Businesses
Income Tax / TOT
Businesses with annual turnover below KSh 25 million fall under Turnover Tax (TOT) at 1.5%. Above that, Corporate Income Tax at 30% applies. Both are filed quarterly.
VAT
If your annual turnover exceeds KSh 5 million, you must register for VAT and file monthly returns by the 20th of the following month.
PAYE
If you have employees, PAYE must be deducted and remitted to KRA by the 9th of each month.
Withholding Tax
Applicable when paying professionals, rent, dividends, or royalties. Rates range from 5% to 30%.
Missing deadlines attracts penalties of 5% of the tax due plus 2% monthly interest. Avatechtax manages all filings for our clients — ensuring you never miss a deadline.
