Turnover tax (TOT) is a simplified tax for small resident businesses. KRA charges it at 1.5% of gross sales for businesses with annual turnover above KES 1 million and not more than KES 25 million.
Estimate only. Rates checked 13 Oct 2026.
Key rules
- Charged on gross sales, with no deduction for expenses.
- Returns and payment are due by the 20th of the following month.
- Late filing costs KES 1,000 a month.
Above KES 25 million, or if you choose the normal regime, income tax applies instead. If you also pass KES 5 million in taxable supplies, check whether you must register for VAT (see our VAT calculator).
Frequently asked questions
What is the turnover tax rate in Kenya?
1.5% of gross sales, per KRA’s TOT page.
Who pays turnover tax?
Resident businesses with annual turnover above KES 1 million and up to KES 25 million.
More: Tax calculators · PAYE calculator · Guides
Sources
- KRA – Turnover Tax (TOT) (checked 13 October 2026)
- KRA – Taxpayers Handbook (filing dates and penalties) (checked 13 October 2026)
