How to Pay Freelance Tax in Kenya: A Practical Guide for 2026

Are Freelancers in Kenya Required to Pay Tax?

Yes. The Kenya Revenue Authority (KRA) requires all individuals earning income, including freelancers, to register for tax and file annual returns. Whether you earn from local gigs, remote work, or international platforms like Upwork and Fiverr, your income is taxable in Kenya.

The good news is that the process is straightforward once you understand the steps. Here is everything you need to know.

Step 1: Get Your KRA PIN

If you do not have a KRA Personal Identification Number (PIN), register on the iTax portal at itax.kra.go.ke. You will need your Kenyan ID number, a valid email, and phone number. Registration is free and takes about 10 minutes. Your KRA PIN is essential for filing returns and receiving payments from formal clients.

Step 2: Understand Your Tax Brackets

Kenya uses progressive income tax rates for individuals:

• Up to KES 288,000 per year: 10%
• KES 288,001 to KES 388,000: 25%
• KES 388,001 to KES 6,000,000: 30%
• KES 6,000,001 to KES 9,600,000: 32.5%
• Above KES 9,600,000: 35%

There is a personal relief of KES 28,800 per year that reduces your total tax bill. Most freelancers earning moderate incomes will fall in the 10-25% brackets.

Step 3: Choose Your Tax Regime

Freelancers in Kenya have two main options:

• Turnover Tax (TOT): If your annual gross income is between KES 500,000 and KES 25 million, you can opt for a simplified 3% tax on gross turnover instead of filing detailed income tax returns.
• Standard Income Tax: File a full return with income, expenses, and deductions. Better if you have significant business expenses to claim.

For most freelancers earning between KES 500,000 and KES 5 million, Turnover Tax is simpler and often cheaper.

Step 4: Keep Financial Records

Track all income from every source: M-Pesa, bank transfers, PayPal, Payoneer, Wise, and direct deposits. Also track business expenses including internet, phone, equipment, software, and workspace costs. These reduce your taxable income under the standard regime.

Step 5: File Your Returns on iTax

Individual tax returns are due by June 30 each year. File through the iTax portal:

1. Log in at itax.kra.go.ke
2. Go to Returns, then File Returns
3. Select Income Tax for Individuals
4. Fill in your income details and allowable expenses
5. Generate and submit the return
6. Pay any tax owed via M-Pesa (Paybill 572572) or bank

Step 6: Handle Withholding Tax

Some Kenyan clients may deduct 5% withholding tax before paying you. This is common with corporate clients and government agencies. Keep withholding tax certificates from these clients, as you can offset them against your annual tax bill.

VAT Considerations

You only need to register for VAT if your annual turnover exceeds KES 5 million. If you cross this threshold, you must charge 16% VAT on your services and file monthly VAT returns.

Common Mistakes

• Filing nil returns when you have income. KRA can audit M-Pesa records and bank statements.
• Not declaring income from international platforms. Upwork and Fiverr income is taxable.
• Missing the June 30 deadline. Late filing penalties start at KES 20,000 or 5% of tax due (whichever is higher).
• Not claiming legitimate business expenses. Internet, equipment, and software costs reduce your tax bill.

Where to Get Help

KRA has a contact centre at 020-4-999-999 and Huduma Centres offer tax assistance. You can also use the KRA M-Service app for quick queries. For personalized help, a tax consultant in Kenya typically charges between KES 5,000 and KES 20,000 for annual filing.