The Kenya Revenue Authority (KRA) has launched a nationwide free tax education programme targeting women entrepreneurs, chamas, self-help groups and women networks to help them better understand their tax responsibilities.
In a notice issued on August 3, KRA invited women-led groups to register for free tax education sessions aimed at improving compliance and helping businesses avoid costly mistakes arising from lack of knowledge about tax obligations.
“We are inviting women in business, chamas, self-help groups, fellowships and other women networks to register for free Tax Education Sessions,” KRA stated.
The initiative, dubbed Empowering Women Through Tax Education, is part of KRA’s wider outreach programme focused on equipping women with practical financial and tax knowledge.
According to the tax authority, the sessions will help women make informed financial decisions, manage their enterprises better and grow their businesses while remaining compliant with tax regulations.
Interested groups are required to provide details including their organisation name, group type, location, email address, phone contacts and the number of women in the group when registering for the training.
Beyond the education sessions, KRA has reminded chama members that their groups may have tax obligations once they begin generating income through investments, lending activities or other commercial ventures.
Many informal groups are unaware that chamas are not automatically exempt from taxation. Under Kenyan tax laws, income generated from profits, commercial investments or business activities may be subject to tax regardless of whether the group is formally registered.
For a chama to operate within tax regulations, it requires its own group KRA PIN separate from the personal PINs held by members. The PIN application is completed using details of group officials, the group constitution and registration documents or meeting minutes.
After registration, the chama must activate relevant tax obligations, including Income Tax on the iTax platform, and file annual returns even when there is no taxable income during a particular period.
However, not all chama contributions are taxable. Ordinary merry-go-round contributions and table banking savings are generally treated as member savings, while income earned from interest on loans or external investments may attract tax obligations.
KRA’s tax position also extends to non-profit organisations, which are generally not taxed on donations received to support their activities.
These include human rights and advocacy organisations, religious institutions such as churches and mosques, disaster response organisations and community support groups.
However, when a non-profit organisation engages in income-generating activities, the revenue earned may become taxable unless the organisation has obtained an official tax exemption certificate.
Despite their non-profit status, such organisations are still required to register for a KRA PIN, comply with tax obligations and deduct Pay As You Earn (PAYE) from employee salaries above the applicable threshold before remitting the deductions.
Non-profit organisations are also required to comply with withholding tax rules when making payments for services such as professional fees, consultancy, training and agency services.
Additionally, Value Added Tax (VAT) obligations may apply on supplier invoices unless a specific transaction qualifies for exemption, while customs duty relief must be separately applied for through the relevant government agencies.
Through the new tax education programme, KRA hopes to improve awareness among women-led groups and small businesses while encouraging voluntary compliance across the country.