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[QUOTE="Queen, post: 87854, member: 27"]
Daily Turnover Tax just landed on Kenya's small traders, flipping the old monthly lump-sum model into a transaction-by-transaction grind.

KRA's new daily TOT system
[LIST]
[*]George Obell confirmed the shift on March 2, 2026.
[*]The monthly 20th-day cutoff gets phased out entirely.
[*]Payments will likely ride on M-Pesa rails.
[*]KRA's MST department, built in 2025, runs it.
[/LIST]
How Turnover Tax actually works
[LIST]
[*]TOT hits 1.5% of gross sales before expenses.
[*]Businesses pulling Ksh 1-25 million annually qualify.
[*]Noncompliant traders eat a Ksh 1,000 monthly fine.
[*]The old setup forced a lump-sum remittance each month.
[/LIST]
Why traders struggled before
[LIST]
[*]Cash was already locked in stock or rent.
[*]One big monthly bill stacked up financial pressure.
[*]Informal-sector monitoring proved consistently tough for KRA.
[/LIST]
What KRA expects from the overhaul
[LIST]
[*]Micro-entrepreneurs should find the voluntary sign-up easier.
[*]Tax obligations stay proportional to each day's revenue.
[*]KRA wants a broader, more inclusive tax base.
[*]Compliance becomes a baked-in part of every sale.
[/LIST]
[/QUOTE]

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