Kenya Revenue Authority

The Kenya Revenue Authority also popularly known to many Kenya’s Tax Payers as KRA is a revenue collection agency of the Government of the Republic of Kenya. This government referred to as GOK established KRA through an act of parliament effectively becoming functional on 1st July 1995. Chapter 469 of the laws of Kenya is indeed the specific chapter that created the agency.

The mandate of KRA is to collect taxes on behalf of her government. The collected funds are also used in the financing of the national budget through Treasury in the ministry of finance. The Cabinet Secretary who is also referred to as the CS in the ministry of finance appoints the KRA Commissioner General. The commissioner general is the Chief Executive or CEO of the authority.

The body is mandated and responsible for assessment, collection and accounting of all revenues that are due to the government of Kenya in every financial year that begins on 1st of July and ends on 30th June of the following year.

It has a Swahili tagline "Tulipe Ushuru Tujitegemee" that can be translated to English with a meaning of "Let us pay taxes for self-reliance".

It is legally mandatory for any income earner who is either a Kenyan Citizen or a foreigner leaving, working or doing business in Kenya to carry out their tax obligations. The obligations may range from collecting, remitting, paying, withholding or even reporting to the agency as is done through the Withholding of Taxes. When an agency withholds tax, it helps to report in advance to KRA that they made a tax payment to another body and is holding a percentage of the total tax on behalf of the other body relative to the revenue agency. This responsibility assists on tracking Tax Evasions especially when the citizenry fails to remit to the Agency. The body withholding the tax – The withholder must issue the other body they are withholding tax on their behalf with a KRA - Withholding Tax Certificate. The certificate is auto generated through the iTax online platform when the withholder enters the details of the person they are withholding tax from and the amount being withheld. The remitter will remit the percentage of Tax charged by the agency less the amount being withheld.

{Tax for remittance to KRA = Total Tax Amount – Total Tax Withheld by an Agency}

Failure to declare the remaining Tax has its own repercussions as set up by the agency. File all forms of Taxes with Tax returns that are done on time to either become or remain Tax Compliant. Obey the set deadlines within her scheduled timelines. Failure to declare and remit such returns on time is liable to fines as set up by the government of the republic of Kenya.

All Tax payers and or their employers must remit payments through officially appointed financial institutions or remittance agencies for all collections that are due. This applies to Employees working in different institutions and entrepreneurs operating as investors. Different ventures under such category comprise of privately and state owned corporations, small and medium scale enterprises (SME), partnerships, sole proprietor businesses and all other corporate bodies that do business and are therefore income earners. They are liable to a variable Pay as you Earn (PAYE) or Corporate Tax that must be declared or remitted in end of every financial year that coincides with 30th of June on the subsequent year.

KRA Tax Remittance and Collection Agencies.

The KRA tax remittance or collection agencies are financial institutions appointed by the agency and comprises of banks and Mobile payment Platform Mpesa.

You can file your Tax Returns via the online portal and acquire a payment advice slip on your registered contact email with the agency. Download and print the form to use it as the payment slip over the banking hall. Use the form to submit (remit) your Taxes through any of the appointed banks. Among the list is The Kenya Commercial Bank – KCB, Cooperative Bank of Kenya – Co-Op, Standard Chartered Bank – Stanchart, Equity Bank, NCBA and many more as provided for on the printable - KRA Online payment advice slip. Use the financial institution that is within reach and of convenience to you. The body has also authorized remittances through the Kenya’s leading Telco - Safaricom PLC Mobile payment platforms channel – MPESA and with a Paybill Number 572572.

How to Pay for KRA with MPESA

You can pay using the new MPESA App as a Fintech by selecting KRA as an Agency or simply use the KRA - MPESA - Paybill Number - 572572

1. Go to MPESA
2. Select >> LIPA na MPESA
3. Enter Paybill Number >> 572572
4. Account Number: >> The Payment Registration number provided for at the top right corner of the generated payment slip
5. Amount: >> The Bill Amount to pay (Note that it has a limit of about Ksh 70,000/= only)
6. Enter PIN: >> Your MPESA secret PIN.
7. Confirm by >> Press Ok.

You will receive a Payment success message from MPESA and from KRA.

You will also receive an Email from KRA confirming the payment.

Tax Compliance

It is easy to file any taxes on set time deadlines without the traditional long queues which was characteristic of the old regime manual filing system. It is important to make payments on time to remain Tax compliant. There are Kenyan adults who do not earn an income or do not qualify for taxation such appearing below the minimum annual tax bracket. However, they must file for Nil Returns annually every end of June via the iTax Portal to remain compliant.

Every tax payer who qualifies for compliance in remittances qualify for a Tax Compliant Certificate. The certificate is available on the online portal and can be downloaded via this - iTax web portal.

The KRA Tax compliant Certificate is a printable PDF download document that has a validity of one year and can be cancelled by the authority without notice if any anomalies are noticed about the tax payer. It is available for both businesses and individuals as tax entities.

It is an important document for business entities as well as for individuals and agencies especially seeking for state jobs and employment. These are Cabinet Secretaries, County Governors, Senators and Members of County assemblies, Members of Parliament, Judicial Service officers, the Executive, The Legislative arm of Government, Ambassadors, Embassies, High Commissions, NGOs, Parastatals and Foreign missions must have the document. This is also one of the document require for a business entity to successfully participate in any official tender process in Kenya.

Tax Classification

Resident Individual – Income
Non-Resident Individual – Income
Company – Income
Partnership – Income
Pay As You Earn (PAYE) - Income
Turnover Tax – Income
Value Added Tax (VAT)
Excise Duty

Financial Accounts

It is mandatory for Limited Companies (Ltd) such as public listed companies, companies listed in stock market and specifically Nairobi Stock Exchange - NSE to have audited accounts.

You can hire an accountant or an auditing firm to balance your financial accounts based on the size and status of your firm. Many companies in Kenya use computerized financial accounting management systems such as Tally, Sage and QuickBooks on a daily basis.

Head Quarters

KRA has her headquarters at Times Towers Building along Haillie Sellasse Avenue, next to the former Agip House in Nairobi Kenya. She however has countrywide branch network which server every region in Kenya. However, most of her services are offered online. Some of the services comprises of

Opening an iTax account

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Every individual who is intending to become and remain compliant must open this account to begin any operation that is mandated by the authority.

Acquiring KRA PIN Number

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This online application will let you acquire a certificate that can later be downloaded or printed for displaying in public as relevant business cerificates must be displayed to the general public.

VAT Registrations

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Companies and individuals with turn over exceeding Ksh 5,000,000/- (5M) must register for VAT. This Registrations are similar to the process of getting a PIN certificate. They are also done on the same portal for individuals or business entities.

Purchasing an Electronic Tax Register (ETR) Machines

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The ETR Machines help businesses and all kind of ventures to issue customers with ETR - VAT Receipts. This is the only way that a customer can ensure that the payment made is remitted to the authority and you are helping the government in receiving the moneys paid. This machines are sold by appointed agents across the country. They sell and configure the necessary entrepreneurs information with this Point of sale - POS devices that are integrated with the revenue platform. Once a supplier charges for a VAT amount, you must demand for your official receipt.

Filing and remmitting of Tax Payments

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Filing and Remittances must be done before the deadline as set up by the authority for every kind of Tax that a person is obligated to pay.

All of the above registrations and remittances must be done on the KRA iTax online web portal for businesses in Kenya