Why most Kenyan SMEs are non-tax compliant

Tax is the main source of revenue for the government’s development projects and recurrent expenditure financing. However, tax compliance among small and medium enterprises (SMEs) is poor.

SMEs have long been recognised as a priority sector for growth and development in Kenya with more than 70 percent of the gross domestic product (GDP) under SMEs’ control. They play a critical role in achieving targeted rates for economic growth and employment figures.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.