14th-Feb-2026 • Martin Mwangi • KRA Compliance
Running a small or medium enterprise (SME) in Kenya comes with its fair share of challenges. One such challenge is ensuring compliance with the Kenya Revenue Authority (KRA). However, navigating KRA's intricate regulations doesn't have to be daunting.
Here's a breakdown of key aspects that every Kenyan SME owner should know about KRA compliance:
The first step towards achieving KRA compliance is registering your business with the KRA. This process involves submitting necessary documents, such as the Certificate of Incorporation and Taxpayer Identification Number (TIN) application form.
If your annual turnover exceeds KES 5 million, you are required to register for Value Added Tax (VAT). Failure to do so can lead to penalties and legal complications.
Regularly filing tax returns is crucial for maintaining compliance. Depending on your business type, you may be required to submit monthly, quarterly or annual returns.
Ensure that all taxes are paid promptly and accurately. This includes PAYE (Pay As You Earn), VAT, corporation tax, withholding tax, and any other applicable taxes.
Maintain accurate records of all transactions, including sales invoices, purchase orders, and financial statements. These documents serve as proof of compliance during audits.
Utilize digital solutions like Lipabiz Technologies Ltd to automate and streamline your tax processes. Such platforms can help you stay updated on regulatory changes, file returns efficiently, and maintain accurate records with ease.
By adhering to these guidelines, you will ensure that your SME is not only KRA compliant but also well-positioned for growth in the competitive Kenyan market.
