# What Every Business Owner Should Know About Taxes in Kenya

If you're running a business—even a side hustle on Instagram—**you owe taxes**. But don’t panic. Understanding taxes is a big step toward being taken seriously, scaling your business, and staying out of trouble with KRA.

Here’s what you need to know.

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#### 🧾 1. **You’re a Business—even Without an Office**

Selling thrifted clothes? Custom cakes? Digital services?  
KRA sees that as **taxable income**. Once your annual income hits **Ksh 1M+**, you’re required to register for **VAT**.

💡 Tip: If you’re just starting, you can register as a **sole proprietor** or a **small business** for **Turnover Tax**.

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#### 📌 2. **There Are 3 Main Taxes You’ll Deal With**

* **Income Tax** – what you earn
    
* **VAT (if registered)** – what you charge customers
    
* **Turnover Tax** – for small businesses earning less than Ksh 5M/year
    

📍You may also need to file **Nil Returns** if your business is inactive.

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#### 💼 3. **Keep Records, or Pay the Price**

KRA needs proof of:

* Sales
    
* Expenses
    
* Receipts
    

This is where most people mess up.

With **Kadhr**, every order is **automatically recorded**—complete with receipts, payment method, and order history.  
You’ll always know what to file, and when.

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#### ⏰ 4. **File Returns by June 30th**

Yes, **even if you made zero**. Late filing = penalties.  
Kadhr can help you track earnings, so filing doesn’t become a nightmare.

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#### ✅ Final Thoughts

Taxes aren’t your enemy.  
They’re proof your business is **growing and becoming legit**. With the right tools, managing tax becomes **easy**, **automatic**, and **stress-free**.

👉 Set up your free Kadhr account and start recording your sales the smart way.