By: John S Morlu II, CPA
Let’s talk about taxes in Kenya — that magical system where you give the government a portion of your money, and in return, you get… well, let’s just say you get the right to keep giving more.
Types of Taxes You’ll Likely Meet:
1. Income Tax – Whether you’re employed, self-employed, or selling mandazis on Instagram, KRA wants its cut. Even your grandmother’s knitting side hustle might qualify.
2. Value Added Tax (VAT) – 16% on most goods and services. Sometimes you’ll pay VAT on products you didn’t know had value — like salt. Yes, salt!
3. Pay As You Earn (PAYE) – For employees. Every payslip comes with a gentle reminder: “You’re working for the country too.” You and KRA are in a long-term relationship — with no divorce option.
4. Corporate Tax – If your business is making profit, congrats! Now give 30% to the government. And pray the rest survives rent.
5. Excise Duty – Applies to items like alcohol, fuel, cigarettes, and sometimes even airtime. Basically, anything that makes life interesting has a government fingerprint.
🤑 Fun Fact: Kenya was one of the first African countries to introduce a digital service tax for platforms like Netflix, Amazon, and even Google Ads. So yes, even your binge-watching is patriotic.
🤖 Wild Tidbit: There’s a rumor that even robots working remotely in Kenya pay tax. AI, beware!
🧐 Interesting Tidbit: Filing returns is mandatory even if you earned nothing. It’s called a “nil return” — like RSVP-ing to a party you weren’t invited to but still expected to send a gift.
💻 Pro Tip: Use the iTax system to file your returns. It’s not exactly fun, but it will test your patience, boost your prayer life, and improve your typing skills. It’s basically a crash course in digital suffering.
🧠 Satirical Note: Many Kenyans believe the national motto should be changed from “Harambee” to “Taxembe” — a powerful blend of “tax” and “remember” — because you WILL remember when that penalty hits.
📚 Side Hustle Taxation: Yes, even your weekend gigs (DJing weddings, selling perfume in traffic, or baking banana bread) are taxable. KRA has ears everywhere. Even your church tithe might look suspicious if it’s over 50K.
🧾 County Fee Olympics:
- Want to open a salon? That’s one fee.
- Put a sign outside? Another fee.
- Paint the sign blue? That’s branding — pay again.
- Sweep your storefront? That’s cleaning permit — maybe not legal, but… just pay.
Where Does the Money Go?
In theory: infrastructure, salaries, healthcare, education.
In reality: some roads, a few white elephant projects, many mysterious trips abroad labeled “fact-finding,” and a very well-fed budget committee.
Final Word:
Taxation in Kenya is both a civic duty and a masterclass in resilience. If you can navigate KRA, you can probably lead a small country or become a motivational speaker.
Remember: in Kenya, taxes are like relatives. You can’t avoid them, but with the right charm and paperwork, you can survive the visits — and maybe even get a refund.
Next up in Chapter Twenty-Six:
“How Kenyans Are Powering AI as Digital Sweatshops.”
About the Author
John is an entrepreneur, strategist, and founder of JS Morlu, LLC, a Virginia based CPA firm with multiple software ventures including www.FinovatePro.com, www.Recksoft.com and www.Fixaars.com . With operations spanning multiple countries, John is on a mission to build global infrastructure that empowers small businesses, entrepreneurs, and professionals to thrive in an increasingly competitive world. He believes in hard truths, smart execution, and the relentless pursuit of excellence. When he’s not writing or building, he’s challenging someone to a productivity contest—or inventing software that automates it.