Kenya Self-Employed — iTax Self-Assessment Return

Establish the client's residency status, KRA PIN, business type, and annual turnover to determine which tax regime applies: normal self-assessment (progressive rates), Turnover Tax at 1.5% on gross turnover (KES 1M–25M, non-professional trades only), or Presumptive Tax of KES 15,000/year (turnover below KES 1M). Professionals and management consultants are excluded from TOT regardless of turnover.

Gather all income and expense evidence: bank statements from Kenyan banks (Equity, KCB, Co-op, NCBA, Absa, I&M, DTB) and M-Pesa statements from Safaricom. Reconcile credits as revenue and classify debits as deductible business expenses, personal drawings, or excluded items. Convert any foreign-currency receipts to KES at CBK rate on the transaction date.

Review deductible business expenses against the 'wholly and exclusively' test under ITA Cap 470. Calculate wear-and-tear capital allowances on a reducing-balance basis for business assets: computers at 30%, vehicles at 25%, furniture at 12.5%, and farm machinery at 100%. Apportion home-office and motor-vehicle costs where mixed-use applies. Confirm NSSF contributions (deductible up to statutory limit) and flag SHIF as non-deductible.

Compute the income tax liability under the applicable regime. For normal self-assessment apply progressive bands (10%/25%/30%/32.5%/35%) then subtract personal relief (KES 28,800/year credit) and insurance relief (15% of qualifying life/health/education premiums, capped at KES 60,000/year). Where the client is in the KES 1M–25M non-professional bracket, present both normal-tax and TOT (1.5% of gross) outcomes and select the lower. For turnover below KES 1M, compare normal vs Presumptive KES 15,000.

Reconcile instalment tax payments already made during the year (due on 20th of the 4th, 6th, 9th, and 12th months, 25% each) against the final liability. Identify any shortfall that may attract the 20% under-estimation penalty. Credit WHT deducted at source (5% on professional fees) against the final tax due. Confirm the balance payable or refund position before filing.

Complete and submit the annual self-assessment income tax return on the KRA iTax portal (itax.kra.go.ke) by 30 June of the following year. For TOT taxpayers, confirm monthly TOT returns have been filed throughout the year. Generate a Payment Registration Number (PRN) for any balance due and settle via M-Pesa Paybill 572572, bank transfer, or authorised agent. Retain the filed return acknowledgement and payment receipts for at least 5 years under the Tax Procedures Act 2015 s23.