Over years of supporting Kenyan businesses, we see the same tax mistakes repeat themselves. Most are avoidable with the right systems and timely advice. Here are the most common — and how to prevent them.
Late Filing and Payment
Missing deadlines is the most frequent mistake. Every late return and late payment attracts penalties and interest that compound quickly. A tax calendar with reminders is the simplest safeguard.
Incorrect VAT Claims
Claiming input VAT on expenses that do not qualify, or without valid tax invoices, leads to disallowed claims and assessments. Maintain proper invoices and a clear VAT schedule.
Mixing Business and Personal Funds
When personal and business transactions flow through the same account, bookkeeping and tax compliance become unreliable. A dedicated business account keeps records clean and audit-ready.
Ignoring Withholding Tax Obligations
Many businesses forget to withhold tax on professional fees, rent and other specified payments. Failure to withhold shifts the tax liability to the payer, plus penalties.
A professional accountant keeps your tax obligations organised and on schedule. If any of these mistakes sound familiar, our team can review your position and bring everything up to date.