Turnover Tax (TOT) for small businesses
Kenya Revenue Authority · sources read 30 Sep 2026
If your business sells more than KSh 1 million but not more than KSh 25 million a year, you pay Turnover Tax of 1.5% on your gross sales. Register for TOT on iTax, then file and pay every month by the 20th.
- Fee
- We couldn't confirm a fee from the official page. Check it there before you pay.
- How long
- KRA adds TOT to your PIN within 5 working days of getting the required documents
- Deadline
- File and pay on or before the 20th of the month after the tax period
- Where
- Online on the KRA iTax portal (or the KRA M-Service App)
Steps
- Log in to iTax, open Registration, choose 'Amend PIN details' and answer Yes to 'Do you want to register for TOT?'. Pick your TOT start date and submit.
- Every month, go to Returns, choose File Return, then Turnover Tax. Download the Excel return, fill it in and submit it.
- Generate a payment slip under the Payment menu and pay at a partner bank or through M-Pesa. You can also file and pay on the KRA M-Service App.
Watch out
- The 1.5% is charged on gross sales and you cannot deduct any expenses. It is a final tax.
- Filing late costs KSh 1,000 per month. Paying late adds 5% of the tax due, plus 1% interest.
- If you sell VATable goods or services and reach KSh 5,000,000 in sales, you must register for VAT as well.
Who can apply
- Resident people and companies whose yearly sales are more than KSh 1,000,000 but not more than KSh 25,000,000
- TOT does not cover rental income, management, professional or training fees, or income already taxed by final withholding tax
Official sources (3)
- Turnover Tax (TOT) kra.go.ke · read 30 Sep 2026
- KRA Service Charter (April 2026) kra.go.ke · read 30 Sep 2026
- iTax portal itax.kra.go.ke · read 30 Sep 2026