The essential compliance payments every Kenyan business should understand

Running a business in Kenya involves more than sales, customers, and growth.

It also means meeting statutory obligations — the legally required payments that allow businesses to operate, employ people, and participate in the formal economy.

These payments fund public services, protect employees, and create a stable business environment.

For employers, understanding them isn’t just about compliance — it’s about

operating responsibly and sustainably.

So let’s break down the main statutory payments Kenyan businesses encounter.

For a practical employer-focused overview, read statutory payments in Kenya.

Payments linked to running and trading as a business

These statutory payments apply because your business operates within regulated

markets and jurisdictions.

Local authorities require businesses to obtain permits to operate legally within their area.

Fees vary by business type, size, and location, and are typically paid annually.

They cover administrative regulation costs and ensure businesses comply with local laws.

Excise Duty

Excise duty is charged on specific goods and services such as alcohol, tobacco, fuel,

and luxury products.

It is applied at manufacture or import and included in consumer prices.

Governments use excise duty both to raise revenue and to discourage consumption of harmful or high-impact goods.

Corporate Tax

Corporate tax is levied on business profits after allowable expenses and deductions.

Rates depend on jurisdiction and tax structure.

It is a major source of government revenue used to fund infrastructure, public services, and national development.

Payroll Tax

Payroll tax (employment or social security tax) is calculated from employee wages or

salaries.

Employers withhold and remit it to fund programs such as:

• retirement benefits
• healthcare
• unemployment protection
• disability support

See the benefits of critical business statutory payments for a full breakdown of how these contributions support businesses.

VAT is a consumption tax applied at each stage of producing and selling goods and services.

Businesses collect VAT from customers and remit it to the government.

It is widely used globally and provides a stable public revenue source.

Employers must make statutory contributions on behalf of employees, typically including:

• social security
• pensions
• healthcare

These contributions provide social protection and financial security for workers.

Complement employee pension contributions with Serrari pension products for additional staff benefits.

Sales Tax

Sales tax is charged at the point of sale on goods and services.

Businesses collect and remit it to authorities.

Rates vary by jurisdiction and the revenue funds public infrastructure and services.

A Serrari Money Market Fund can help maintain the liquidity buffer needed for timely statutory remittances. Speak with a Serrari advisor to structure your business payments compliance strategy.