Staying compliant with the Kenya Revenue Authority (KRA) requires tracking multiple statutory deadlines throughout the year. This checklist covers the key obligations every registered Kenyan business must meet.
Monthly Obligations:
• PAYE (Pay As You Earn): Due by the 9th of every month for all employers with employees earning above the tax threshold.
• NSSF (National Social Security Fund): Due by the 9th of every month. Tier I and Tier II contributions apply based on employee earnings.
• SHIF (Social Health Insurance Fund): Due by the 9th of every month. Replaced NHIF and applies to all adult Kenyans including employees.
• Affordable Housing Levy: Due by the 9th of every month. 1.5% of gross salary deducted from employees, matched by the employer.
• VAT (Value Added Tax): Due by the 20th of every month for businesses registered for VAT (mandatory if annual turnover exceeds KES 5 million).
Annual Obligations:
• Corporate Income Tax (IT2C): Due by the end of the 6th month after your financial year end. Standard rate is 30% for resident companies.
• Individual Income Tax Returns: Due by 30th June every year for all individuals with a KRA PIN.
• Withholding Tax Certificates: Issued and filed annually for various payment categories including consultancy, rent, and dividends.
Key Compliance Documents:
• Tax Compliance Certificate (TCC): Required for government tenders, license renewals, and many business transactions. Must be applied for via iTax and kept valid at all times.
• VAT and PAYE records must be retained for a minimum of 7 years as required by the Tax Procedures Act.
Engaging a professional CPA firm ensures all deadlines are tracked and met, preventing penalties, interest charges, and a lapsed TCC that can disrupt business operations.