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Kenyan tax and accounting, in plain English

Short, practical guides on VAT, PAYE, eTIMS and KRA compliance, written by our ICPAK-certified team for business owners, not accountants.

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Frequently asked questions

Quick answers

When is VAT due in Kenya?
VAT returns and payment are due to KRA by the 20th of the month following the tax period. If you had no transactions, you must still file a nil return to avoid penalties.
Do I need eTIMS if my business is not VAT registered?
Yes. All businesses are required to issue eTIMS-compliant invoices, and your customers need eTIMS invoices from you for their expenses to be tax deductible. Ignoring it puts both your compliance and your client relationships at risk.
What payroll deductions must a Kenyan employer remit?
PAYE, SHIF, NSSF and the Affordable Housing Levy, deducted and remitted every month and filed against each employee's personal KRA PIN. The obligation to remit sits with the employer, not the employee.
What happens if I file my KRA returns late?
Late filing attracts penalties and interest that compound month after month. Filing on time, even a nil return, is always cheaper than catching up later. If you already have arrears, a structured catch-up plan limits the damage.
Does a company Tax Compliance Certificate cover its directors and employees?
No. A company TCC does not resolve individual PAYE filing gaps. Under the Income Tax Act, the employer must remit PAYE and file against each employee's personal PIN. Each individual's iTax ledger must be clean in its own right.
How much does an accountant cost for an SME in Kenya?
Outsourced accounting typically runs from KES 8,000 to KES 50,000+ per month depending on transaction volume, payroll size and reporting needs. Our packages are listed on the home page.

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