9th-Feb-2026 • Brendah Akinyi • KRA Compliance
Small and Medium Enterprises (SMEs) in Kenya are the backbone of our economy, contributing significantly to employment and GDP. However, navigating the intricacies of taxation and compliance can be overwhelming for many entrepreneurs.
One key regulatory body is the Kenya Revenue Authority (KRA), responsible for overseeing taxes in Kenya. Adhering to KRA compliance is essential for your business's long-term success, but it's often a daunting task for SMEs due to the complex regulations and procedures.
Here's a roadmap to simplify your KRA compliance journey:
Every business is unique, and so are its tax obligations. Familiarize yourself with the taxes applicable to your specific enterprise. Common taxes for SMEs include Value Added Tax (VAT), Pay As You Earn (PAYE), National Health Insurance Fund (NHIF) contributions, and Kenya Pension Scheme (KPS).
Registering your business with KRA is a fundamental step towards compliance. Visit the KRA website or a local tax office to initiate the registration process.
You'll need specific documents for KRA compliance, such as the Taxpayer Identification Number (TIN), VAT certificate, PAYE registration certificate, and NHIF and KPS certificates.
Maintaining accurate records is crucial for smooth compliance. Keep detailed financial records, invoices, receipts, and payroll information to facilitate tax filing and audits.
Regularly file your tax returns as per the set deadlines. Late or inaccurate filings may result in penalties and interest charges.
KRA regulations are subject to change, so it's essential to stay updated on any updates that might affect your business. You can subscribe to KRA newsletters or follow their social media handles for the latest information.
By adhering to these steps, you can simplify your KRA compliance and focus more on growing your business. Remember, compliance is not just a requirement but an investment in your business's future success.
