Annual Tax Estimator (Kenya)

This annual tax estimator gives a rough yearly tax figure for a Kenyan business from your turnover and profit, so you can plan cash for KRA instead of being surprised.

By Veira Team, Kenya SME toolsPublished June 2026Updated June 2026

Calculator

Annual turnover (KES)

Net profit margin

Tax regime

Result

Estimated annual tax: KES 90,000

Annual turnoverKES 3,000,000

Estimated net profitKES 450,000

Estimated income/turnover taxKES 90,000

Set aside per monthKES 7,500

VATTurnover is below the KES 8,000,000 mandatory VAT threshold (voluntary registration is allowed from KES 5,000,000).

Estimate basis: 3% of turnover. This is a planning estimate, not a filed figure. Reliefs, allowable expenses and instalment tax change the final amount.

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How to plan for your yearly tax

The simplest way to avoid a tax shock is to set money aside every month against the year ahead. This estimator turns your turnover and margin into a yearly tax figure and a monthly amount to keep aside.

It is an estimate, not a return. The turnover tax regime charges 3% of turnover; a limited company pays 30% of net profit; a sole trader pays graduated rates that average roughly a quarter of profit. Allowable expenses, reliefs and instalment tax all change the real number, so use this to plan, then file on your actual figures.

Worked examples

Small shop on turnover tax

Turnover KES 3,000,000 at 3% is KES 90,000 for the year.
That is KES 7,500 to set aside each month.

Frequently asked questions

How much tax will my business pay in a year?

It depends on your regime. Turnover tax is 3% of turnover; a limited company pays 30% of net profit; a sole trader pays graduated rates averaging around a quarter of profit. This estimator gives a planning figure and a monthly amount to set aside.

When must I register for VAT?

When your annual taxable turnover reaches KES 8,000,000, the threshold set by the Finance Act 2025. Voluntary registration is allowed from KES 5,000,000. Below that you are not required to register, though you still issue compliant eTIMS invoices to record income.

Is this the exact tax I will pay?

No. It is a planning estimate. Allowable expenses, reliefs, instalment tax already paid, and your exact regime change the filed figure. Use it to set money aside, then file on real numbers.

What is turnover tax?

Turnover Tax is a simplified tax of 3% on gross turnover for qualifying small businesses, filed monthly. It replaces the more complex profit-based computation for those within its limits.

How does Veira help?

Veira tracks your real turnover and margins as you sell, so your annual estimate is based on actual trade and your figures are ready when returns are due.