The Kenya Revenue Authority (KRA) has launched a nationwide initiative offering free tax education sessions targeted at women in business, chamas, self-help groups, fellowships, and other women’s networks.
The program, part of KRA’s “Empowering Women Through Tax Education” campaign, aims to equip women with practical knowledge to manage their tax responsibilities and foster business growth.
Registration and Participation
Groups interested in participating can register by submitting details including the group’s email, name, type, location, contact number, and membership size. This outreach is designed to prevent costly tax errors by enhancing awareness early.
Tax Responsibilities for Chamas
KRA emphasizes that chamas are subject to tax laws, whether informal or registered. Each chama must obtain a unique KRA PIN distinct from individual members’ PINs. This requires providing officials’ details, the group constitution, and registration minutes.
Once registered, chamas must file annual tax returns—even if no income was earned—to maintain compliance. While contributions such as merry-go-round funds and table banking seed money are considered savings and not taxable, income from lending or investments is taxable.
Tax Rules for Non-Profit Organizations
KRA clarifies that donations to Non-Profit Organizations (NPOs) are exempt from tax, covering groups like human rights organizations, religious institutions, disaster relief, and community support bodies.
However, income generated from commercial activities by NPOs is taxable unless an exemption certificate has been granted. NPOs must register for a PIN, deduct PAYE from employees earning above Ksh 24,000, remit it monthly, and withhold taxes on applicable fees. VAT and customs duties apply unless specific exemptions are obtained.
This tax education drive reflects KRA’s commitment to improving compliance among women-led groups and ensuring they understand their financial and tax obligations clearly.
