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iTax Filing for Small Businesses in Kenya: Step-by-Step

📅 16 May 2026 · ✅ Last verified: 12 October 2026 · 📖 7 min read · Tax & KRA
Black Kenyan SME owner cross-checking a paper ledger beside an abstract laptop filing workflow
Original editorial artwork; no official interface or endorsement depicted.

Filing taxes through KRA's iTax portal is a legal requirement for most registered businesses in Kenya. While the system can seem intimidating at first, once you understand the process, it takes just 15–30 minutes per filing period.

⚠️ Missed the Deadline? KRA imposes penalties for late filing, and the amounts differ by obligation (for example, KES 10,000 or 25% of tax due for PAYE, and KES 10,000 or 5% for VAT — see section 7 below). File on time or apply for an extension before the deadline.
📱 New: You Can Also File via WhatsApp! KRA's Shuru AI chatbot lets you handle several tax services through WhatsApp — no iTax login needed. Save 0711 099 999 and send "Hi" to get started. See our full WhatsApp filing guide for the services KRA has confirmed.

1. Set Up Your iTax Account

  1. Visit itax.kra.go.ke
  2. Click "Create Account" — select "Individual" for personal PIN or "Non-Individual" for a business
  3. Enter your KRA PIN, ID number, and personal details
  4. Set a strong password and security questions
  5. Check your email for the activation link
  6. Log in and set up your profile

If you already registered your PIN through KRA PIN registration, you can log in with your existing credentials.

2. Understanding Your Tax Obligations

As a small business in Kenya, you'll typically deal with these types of tax:

  • Income Tax: Annual deadlines depend on taxpayer type and the end of the year of income or accounting period; see section 4 below.
  • Turnover Tax (TOT): For qualifying resident persons with annual gross turnover more than KES 1,000,000 and not exceeding KES 25,000,000, subject to exclusions. Rate: 1.5% of gross sales (see our Turnover Tax guide). Filed monthly by the 20th.
  • VAT: Registration is required when taxable supplies are or are expected to be worth at least KES 5 million in a year; voluntary registration below the threshold is subject to KRA conditions. The general rate is 16%; specified zero-rated supplies are 0%. KRA says the former 8% rate for certain petroleum products was deleted from 1 July 2023 by the Finance Act 2023. A check on 11 October 2026 confirmed that Legal Notice No. 128 set an 8% rate from 15 July through 14 October 2026 for premium motor spirit (tariff 2710.12.20), illuminating kerosene (2710.19.22) and gas oil for automotive, light and amber high-speed engines (2710.19.31). This temporary order does not cover every petroleum product; check later Gazette notices before relying on a rate after 14 October. VAT returns are filed monthly.
  • PAYE: If you have employees. Withheld from salaries and remitted monthly by the 9th.
  • Withholding Tax: On certain payments (rent, dividends, professional fees).

3. Filing Monthly Returns

  1. Log into iTax
  2. Go to "Returns" → "File Return"
  3. Select the relevant return type (VAT, TOT, or PAYE)
  4. Select the tax period (month and year)
  5. Fill in the required figures:
    • For TOT: Enter gross sales/turnover for the month
    • For VAT: Enter sales, purchases, and VAT amounts
    • For PAYE: Enter employee salaries, deductions, and remittances
  6. Review and confirm the amounts
  7. Submit the return
  8. Pay any tax due via M-Pesa or bank

Returns are due by the 20th of the following month (VAT and TOT).

4. Filing Annual Returns

From 1 January 2027, individuals file by the last day of the fourth month after their year of income ends, which is 30 April for a calendar year. KRA’s implementation guidance also includes self-employed people and partnerships in this group. Companies and other non-individual taxpayers continue to file by the last day of the sixth month after their accounting period ends. Follow KRA’s guidance for your return and accounting period.

TOT is a final tax for income subject to TOT, so that income does not require an annual income-tax return. Other income or obligations may require separate returns. If your obligations require an annual return, prepare:

  • Annual financial statements (profit and loss, balance sheet)
  • Monthly sales summaries
  • Expense records and receipts
  • Bank statements

5. Common Pitfalls

  • Late filing penalties: amounts vary by obligation; use the obligation-specific figures in this guide and confirm current amounts with KRA.
  • Filing zeros when you had sales: KRA cross-references with eTIMS data. Discrepancies trigger audits.
  • Mixing personal and business expenses: Keep separate accounts for clean tax filing
  • Missing deadlines: Set reminders for monthly filing dates and check the applicable annual deadline for your taxpayer type and accounting period.
  • Not keeping records: KRA can audit up to 5 years back. Keep all receipts and statements.

6. Getting Help

  • KRA Contact Centre: 020 4999 999 or 0711 099 999
  • Visit your nearest KRA office for free assistance
  • KRA iTax has a "Help" section with guides and FAQs
  • Consider hiring a tax consultant for the first filing (KES 3,000–10,000)

7. Penalties at a Glance

KRA's current guidance distinguishes late-filing penalties from late payment. Late filing of a TOT return attracts KES 1,000 per month. Late VAT filing attracts KES 10,000 or 5% of tax due, whichever is higher. Late PAYE filing attracts KES 10,000 or 25% of tax due, whichever is higher. For VAT and TOT, late payment carries a 5% penalty plus 1% monthly interest on unpaid tax. Other obligations have their own rules; confirm current amounts with KRA's penalties guidance.

These amounts describe different offences: do not add late-payment interest to a late-filing amount unless KRA says both apply to the same case.

8. Frequently Asked Questions

How do I set up an iTax account?

The guide's first section walks through account setup — you need your KRA PIN and registered details.

When are returns due?

From 1 January 2027, individuals file by the last day of the fourth month after their year of income ends, which is 30 April for a calendar year. KRA’s implementation guidance also includes self-employed people and partnerships in this group. Companies and other non-individual taxpayers continue to file by the last day of the sixth month after their accounting period ends. Follow KRA’s guidance for your return and accounting period.

What do I do if I make a mistake on a return?

The "Common Pitfalls" section covers mistakes and how to handle corrections.

Related Guides

⚠️ Disclaimer: Tax rates, thresholds, and penalties change with each Finance Act. Always verify current rates on the KRA website or consult a qualified tax professional.

Sources and update record

Scope-specific checks: The 2027 filing deadlines, including KRA’s listing of self-employed people and partnerships in the fourth-month group, were checked on 11 October 2026. The temporary petroleum VAT order was checked against Legal Notice No. 128 and EPRA’s related pricing statement on that date. The full guide was reviewed on 12 October 2026; the source list below retains each source’s actual check date.