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For small businesses and side hustles

Small business hub

The basics of starting and running a business in Kenya: registration, tax and money tools, with links to the official services.

Start a business in five steps

  1. Register the business. Register a business name or a limited company with the Business Registration Service on eCitizen.
  2. Get a KRA PIN for a company, or use your personal PIN for a sole proprietorship, on iTax, and register for the right tax obligations.
  3. Get a single business permit from your county government. Each county sets its own fees.
  4. Register for eTIMS, KRA's electronic invoicing system, so the invoices you issue are valid for tax.
  5. Open a business bank account and an M-Pesa till or paybill, so business and personal money stay separate.

Which tax do I pay?

Yearly salesMain tax
Below KES 1 millionIncome tax on your profit, through your personal return
KES 1 million to 25 millionTurnover tax at 1.5% of gross sales, a final tax filed monthly by the 20th
Above KES 25 millionIncome tax on profit (corporation tax for companies)

VAT registration is compulsory once your taxable sales reach KES 5 million in 12 months. Turnover tax does not cover rental income, management, professional or training fees, or income already taxed by final withholding tax. A simplified guide; check with KRA or a tax adviser.

Guides for your business

Business2 min read

When must a business register for VAT in Kenya?

Value Added Tax becomes compulsory once your taxable sales reach KES 5 million in any 12 months. Here is how the threshold works and what changes once you register.
Business2 min read

eTIMS explained: KRA's electronic invoicing for small businesses

eTIMS is KRA's system for issuing electronic tax invoices. It is free, and it affects every business, VAT-registered or not. Here is what it is, the options and why your customers care.
Business2 min read

Turnover tax in Kenya: a simple guide for small businesses

If your business sells between KES 1 million and 25 million a year, turnover tax is probably your main tax. It is 1.5% of gross sales, paid monthly. Here is how it works.
Business2 min read

How to register a business name in Kenya on eCitizen

Registering a business name is the quickest way to make a side hustle official in Kenya. It is done online through eCitizen. Here are the steps, the cost and what comes next.

Money tools for your business

Turnover taxMonthly turnover tax for small businesses Loan calculatorMonthly repayments and total interest on any loan M-Pesa chargesFees for sending money and withdrawing at an agent Kenya PAYETake-home pay after PAYE, NSSF, SHIF and the Housing Levy

Common questions

Do I need to register a side hustle?

If you trade regularly, you should register the business and get a county permit. It also lets you open a business account, issue proper invoices and apply for loans and tenders.

What is eTIMS?

eTIMS is KRA's electronic tax invoice system. Businesses use it to issue invoices that buyers can claim as expenses.