VAT Threshold Kenya 2026 - KES 5M or 8M? The Real Answer
Smart VAT Kenya — Last verified 2026-08-08 against KRA guidance
Every blog in Kenya disagrees on whether the VAT registration threshold is KES 5 million or KES 8 million. Here is what KRA's primary guidance and the statute actually enforce.
The Operative Rule: KES 5 Million
Under section 34 of the VAT Act (Cap. 476), you must register for VAT within 30 days once your taxable turnover reaches or exceeds KES 5,000,000 in any 12-month period.
The confusion around KES 8 million stems from proposals in the Finance Act 2025. However, as verified against KRA's official portal guidance and professional tax summaries (PwC, etc.), that increase has not been brought into active legal force via Gazette notice. Operating on the assumption that 8 million is law risks a non-registration penalty of KES 100,000 per month (TPA s.95).
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Check With Our AgentsFrequently Asked Questions
Is the VAT threshold in Kenya 5 million or 8 million?
The operative mandatory threshold is KES 5,000,000. While the Finance Act 2025 proposed raising it to KES 8 million, KRA's official iTax guidance and tax professional summaries confirm 5 million remains the enforced law.