18th-Oct-2025 • Martin Mwangi • KRA Compliance
Navigating tax obligations and other regulatory requirements can be a daunting task for small and medium enterprises (SMEs) in Kenya. However, staying compliant with the Kenya Revenue Authority (KRA) is crucial to your business's longevity and success. This guide provides a simplified, step-by-step approach to help SME owners navigate KRA compliance.
Before commencing operations, register your business with the Kenya National Bureau of Statistics (KNBS) and obtain a Trade Name Certificate. Afterward, register with KRA for Value Added Tax (VAT), PAYE, and NSSF.
Once registered, apply for a KRA Personal Identification Number (PIN). This unique identifier will be used in all your interactions with KRA.
Submit monthly returns and payments of PAYE, VAT, and NSSF contributions on or before the 15th of each month using iTax. Late submissions may result in penalties.
Maintain accurate financial records to facilitate easy preparation of annual returns and simplify audits. Include records such as invoices, receipts, bank statements, and payslips.
Prepare and submit your annual returns using iTax before the 30th of June every year. Failure to do so may result in penalties or suspension of your trading license.
Stay informed about any changes to KRA regulations by regularly checking their official website and subscribing to relevant updates. This will help you stay compliant and avoid costly errors.
Take the example of Mwangi, a small business owner in Nairobi. Mwangi initially struggled with KRA compliance but decided to seek professional help from Lipabiz Technologies Ltd. By automating his tax and financial management processes using our platform, he was able to stay compliant effortlessly, saving both time and money.
Staying KRA compliant is essential for SME success in Kenya. By registering your business, obtaining a KRA PIN, submitting monthly and annual returns, keeping accurate records, and staying informed about changes to regulations, you can maintain compliance with ease.