How To Start A Tax Consultancy Business In Kenya

  • June 7, 2025
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How Do You Start a Tax Consultancy Business in Kenya?

Starting a tax consulting business in Kenya can be a lucrative venture, given the complex tax laws and the growing number of businesses needing compliance assistance. Here’s a step-by-step guide to help you establish your tax consulting firm:

  1. Research and Planning

  • Market Research: Identify your target clients (SMEs, corporations, individuals, etc.) and analyze competitors.
  • Services Offered: Decide on the tax services you’ll provide (e.g., tax compliance, advisory, tax audit support, payroll taxes, VAT filing).
  • Business Model: Choose between a sole proprietorship, partnership, or limited company

  1. Legal Requirements & Registration

  • Business Name /Company Registration: Register your business with the Business Registration Service (BRS) via eCitizen.
  • Tax Compliance:
    • Obtain a KRA PIN for your business.
    • Register for VAT (if applicable).
    • Sign up for NSSF, SHIF, NITA, and PAYE if hiring employees.
  • Professional Certification: While not mandatory, having a CPAK Certification boosts credibility.

  1. Licensing & Professional Memberships

  • Institute of Certified Public Accountants of Kenya (ICPAK): Membership and license enhance trust.
  • Kenya Revenue Authority (KRA) Tax Agent License: Required if filing returns on behalf of clients (apply via KRA’s iTax).
  • County Business Permit: Obtain a license from your local county government (ICPAK licensed practitioners are exempted from County Business Permits)

  1. Setting Up Your Business

  • Office Space: Choose a physical location or operate remotely.
  • Technology & Software: Invest in tax software (e.g., QuickBooks, Zoho Books, Tally Prime, Sage, Xero, Odoo, etc).
  • Staffing: Hire qualified accountants/tax experts if needed.

  1. Marketing & Client Acquisition

  • Branding: Develop a professional logo, website, and business cards.
  • Digital Marketing: Use LinkedIn, Facebook, and Google Ads to reach businesses.
  • Networking: Join business forums (e.g., KNCCI) and attend tax seminars.
  • Partnerships: Collaborate with law firms, auditors, and financial advisors.

  1. Compliance & Continuous Learning

  • Stay updated with KRA tax changes (e.g., Finance Act updates).
  • Attend ICPAK workshops and KRA training sessions.

  1. Pricing Your Services

  • Charge based on:
    • Hourly rates (for consultations).
    • Fixed fees (for monthly/annual compliance).
    • Percentage-based (for tax Cases).

  1. Scaling Your Business

  • Expand services to include auditing, accounting, or financial advisory.
  • Open branches in major towns (Nairobi, Mombasa, Kisumu).

Key Challenges to Watch For

  • High competition from established firms.
  • Changing tax laws requires constant updates.

 

https://blog.hisibati-consulting.co.ke/blog/

https://www.linkedin.com/newsletters/tax-updates-6926152810094821376/



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