New Department of Micro & Small Taxpayers!??

RWK Africa

The Kenya Revenue Authority (KRA) has intensified its focus on small and micro businesses with turnovers of KSh200 million or less. This effort is spearheaded by the newly established Department of Micro & Small Taxpayers, led by Acting Commissioner George Obell. The department, launched in March 2025, aims to combat tax evasion in the informal sector, which KRA identifies as a significant untapped revenue source.

Key measures include targeting businesses filing nil returns or failing to file tax returns despite being operational.

Impacts of KRA’s New Measures

1. Increased Compliance Costs: SMEs may face higher costs for maintaining financial records, seeking professional advice, and adopting new technologies.
2. Greater Transparency: Enhanced scrutiny promotes accurate income reporting and reduces tax evasion.
3. Penalties and Legal Actions: Non-compliant businesses risk fines, legal action, and potential closure.
4. Fairness and Equity: A level playing field is created as all taxpayers contribute their fair share.
5. Taxpayer Awareness: Education programs will help SMEs understand their obligations.

If you'd like to talk to a tax and finance expert, you can click here to book a free consultation appointment.

How RWK Africa Can Help

RWK Africa offers comprehensive support to help businesses navigate these changes:

Our Services

1. Tax Services: Assistance with tax preparation, planning, and compliance to meet KRA requirements.
2. Tax Training: Over 30,000 individuals trained in bookkeeping and auditing through online and in-person sessions.
3. Audit Services: Independent examination of financial records to ensure accuracy and compliance.
4. Bookkeeping Solutions: Introduction of "My Accurate Books," an accounting software tailored for SMEs.
5. Business Advisory: Guidance for startups on financial planning and regulatory compliance.
6. Free Online Consultations: Access expert advice at no cost.
7. Monthly Training Sessions: Virtual and in-person workshops on tax management and financial practices.

The Bigger Picture

The evolving tax landscape in Kenya, marked by KRA's increased scrutiny, presents both challenges and opportunities for SMEs. While compliance may seem daunting, it's a crucial step toward fostering a fair and robust business environment. RWK Africa is dedicated to supporting your business through these changes by providing expert guidance, practical tools, and comprehensive training.

Let us help you turn compliance into a competitive advantage, ensuring your business not only meets its obligations but also thrives and contributes to Kenya's economic growth.

If you'd like to talk to a tax and finance expert, you can click here to book a free consultation appointment.

RWK Africa remains committed to empowering businesses with the tools and knowledge they need to thrive in this evolving tax landscape.

For more information or support, contact us today!

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