29th-Jan-2026 • Maxwel Odira • Tax and Finance
For small and medium-sized enterprises (SMEs) in Kenya, understanding tax and finance is crucial for success. Here are some insights and actionable tips to help navigate these critical areas.
Registering your business with the Kenya Revenue Authority (KRA) is the first step towards managing taxes effectively. This process includes obtaining a Tax Identification Number (TIN), which enables you to file returns and pay taxes.
SMEs in Kenya are required to pay various taxes, including Value Added Tax (VAT) for businesses with an annual turnover of KES 5 million and above, Pay-As-You-Earn (PAYE) for employees' income tax, Withholding Tax (WHT), and Corporation Tax.
Accurate record-keeping is essential for managing taxes and finances effectively. This includes maintaining records of sales, purchases, expenses, and payments made to employees and the KRA. By keeping accurate records, you can easily track your financial performance and comply with tax regulations.
Technology can help SMEs manage their taxes and finances more efficiently. Solutions such as Lipabiz Technologies Ltd's business management platform and payments platform offer features like invoicing, expense tracking, tax calculation, and e-filing, making it easier for businesses to stay on top of their financial obligations.
Navigating the complexities of tax and finance can be challenging for SMEs. Seek advice from a certified public accountant (CPA) or tax consultant to ensure you're meeting your obligations and taking advantage of any available deductions.
Proactive financial planning is essential for SMEs in Kenya. This includes setting aside funds for anticipated expenses, creating a budget, and developing a long-term financial strategy. By planning ahead, you can mitigate financial risks and ensure the stability of your business.
