If you are new to tax in Kenya, the list of names can feel overwhelming: PAYE, VAT, turnover tax, withholding tax, excise duty. The good news is that most people only deal with two or three of them. Which ones depend on how you earn your money. This guide goes through each, says who pays it and when, and points you to the tool or article that goes deeper.

If you are employed: PAYE

Your employer deducts Pay As You Earn from your salary and pays it to KRA. Tax is charged in bands, with a personal relief that reduces it. You still need a PIN and an annual return, even when your employer has deducted everything. See how PAYE is calculated and try the PAYE calculator to see your own figures. The annual return is explained in filing your employment return with a P9.

If you run a business: income tax, turnover tax or VAT

A business can meet several taxes at once:

The KRA filing calendar for small businesses shows what falls due each month.

If you own rental property: rental income tax

Landlords either pay monthly rental income tax at 7.5% on gross rent, or declare the income in an annual return and deduct expenses. Which is better depends on your costs. Read MRI or annual rental tax, then test both with the rental income tax calculator.

If you pay others: withholding tax

When a business pays certain people, such as contractors, consultants or landlords, it may have to hold back tax and send it to KRA. The person paid receives a certificate and uses it as a credit. See withholding tax in Kenya explained.

If you import: duty and VAT at the border

Imports meet customs duty, VAT and other charges before the goods are released. The import duty calculator estimates the total, and how to calculate import duty on goods walks through the steps.

If you sell property or invest: capital gains and other taxes

Selling land or shares can create a taxable gain. See selling a property: capital gains tax steps. Some goods and services, such as betting, alcohol and airtime, also carry excise duty on top; read excise duty on airtime, money transfer and bank fees.

What everyone needs

Whatever your situation, three things apply:

  1. A KRA PIN. See how to get a KRA PIN.
  2. An iTax account, where you file and pay. See how to register on iTax.
  3. Records. Keep receipts, payslips and statements for the years KRA may ask about.

Deadlines matter because late filing and late payment bring penalties and interest; KRA penalties and interest explained shows how they add up. The usual annual deadline for individuals is 30 June, covered in the 30 June tax deadline.

Keep your records in one place

A simple log of what you filed and paid saves time every year. The tax records checklist and document log gives you a ready layout, and the KRA filing and payment calendar lists the dates.

Rates change

The rates quoted here come from the current rules, but each Finance Act can change them. Check the tool you are using for the latest figures, and read how Finance Acts change your taxes to see how changes reach you.

Where to go next

Pick the section above that matches your situation and read it first. If you are employed, start with the payslip guides and the PAYE calculator. If you run a business, decide which regime fits before the year begins, and put the filing dates in your calendar. If you earn from several sources, such as a salary, a side business and a rental, you will need to combine them on your annual return, and our guide to side hustle income for employees explains how. Taking the topics one at a time makes tax far less daunting.