How to Grow a Business in Kenya: Key Tax and Risk Measures

Growing a business in Kenya requires a solid strategy, proper tax compliance, and effective risk management. Here’s what you need to consider:

Tax Measures

1. Business Registration – Register your business with the Business Registration Service (BRS) and obtain a Personal Identification Number (PIN) from the Kenya Revenue Authority (KRA).
2. Tax Compliance – File and pay taxes on time, including:
   • Turnover Tax (TOT) – For businesses earning Ksh 1M–50M annually.
   • Value Added Tax (VAT) – If annual revenue exceeds Ksh 5M.
   • Corporate Tax – 30% for resident companies and non-residents.
   • Pay As You Earn (PAYE) – Deduct and remit employees’ income tax.
3. E-TIMS Compliance – Adopt the new electronic invoicing system for tax reporting.

Risk Management Measures

1. Legal Compliance – Ensure licenses and permits are up to date.
2. Business Insurance – Cover risks like fire, theft, and employee liability.
3. Financial Controls – Keep accurate records and separate personal and business accounts.
4. Cybersecurity – Protect sensitive data from fraud and hacking.
5. Diversification – Expand revenue streams to mitigate economic downturns.

Proper tax planning and risk mitigation will position your business for sustainable growth in Kenya.