The Cost of Hiring a KRA Tax Agent in Kenya – Is It Worth It? As a taxpayer, it’s crucial to know the cost of obtaining professional tax services in Kenya. Whether you are an individual, SME, property manager, an NGO, or a large company, it helps to know the cost of hiring a KRA tax agent. First, you want to know if hiring a professional is cost-effective. Paying taxes is already taking a chunk of your money out of your accounts, and it wouldn’t make financial sense to spend outrageous amounts on tax compliance.
Secondly, it helps you budget for tax compliance. As you are setting money aside to remunerate your employees, settle suppliers’ debts, and cover other expenses, you also include the cost of filing your monthly and yearly taxes, KRA audits, and other compliance expenses.
Lastly, it protects you from exploitation. When you have a range to work with, it’s easy to get quotes from different tax agents and know which one is a serious professional. If you know a loaf of bread costs between KSh 60 and KSh 100, you’d be suspicious of anyone who asks for KSh 20 or KSh 200 for the same bread. In the same way, knowing the cost of hiring a tax agent helps you get value for your money.
In this post, we break down the cost of hiring a KRA tax agent in Kenya, the factors influencing this fee, and the approximate pricing of various tax services. By the end of this article, you’ll be informed to help you answer the question in most taxpayers’ minds: Is it worth it to hire a KRA tax agent in Kenya?
The Cost of Hiring a KRA Tax Agent in Kenya
Engaging a tax professional offers many benefits. While there are no fixed national fees, market norms can provide useful price benchmarks. KRA tax agent costs in Kenya vary by the service type, taxpayer profile, complexity, and urgency. Below, we examine the typical KRA tax agent costs in Kenya.
Basic Engagement and Onboarding
Assume you are a new taxpayer who knows nothing about engaging a tax professional. When you first engage a registered tax agent, they want to know your tax profile, compliance status, and the kind of assistance you seek. This is called onboarding. Here are the approximate costs of basic engagement and onboarding:
- Individuals and Sole Proprietors: KSh 2,000- KSh 5,000.
- SMEs and Partnerships: KSh 7,500- KSh 10,000.
- Large and Foreign Corporations: KSh 10,000- KSh 20,000.
The onboarding fee is the baseline, usually a one-off and upfront fee before further engagement.
Filing Tax Returns
Filing returns is the most common professional tax service sought by taxpayers in Kenya. These include individuals filing PAYE returns, property owners with rental income returns (MRI), SMEs with VAT, turnover, and withholding returns, and companies with corporate tax returns. Here are the estimated costs of filing tax returns:
| Service Type | Typical Fees (KSh) |
| Simple Income Tax Return (Single Income) | 2,000-5,000 |
| SME Annual Corporate Return | 7,000-15,000 |
| VAT Filing and monthly tax compliance | 2,000-10,000 per tax period |
| Complex Income Tax Return (Multiple Incomes) | 15,000-40,000 |
Note: These are market rates plus the minimum guidelines. Tax agents adjust these rates based on deadlines, the number of schedules, and supporting documents.
Tax Compliance Certificate and other Miscellaneous Filings
Some businesses may require one-time compliance services like obtaining a tax compliance certificate, KRA PIN registration, and iTax setup. Most KRA tax agents bundle these services into packages. Here are the estimated costs of these services:
- Obtaining a Tax Compliance Certificate (TCC): KSh 2,000- KSh 10,000.
- KRA PIN Registration and iTax Setup: KSh 2,000- KSh. 10,000.
- NIL Returns and Simple Tax Filings: KSh 1,500- KSh 5,000.
Firms may bundle these services into comprehensive packages priced differently.
Tax Planning and Advisory Services
Tax planning and advisory goes beyond the basic services of filing tax returns. It’s for serious taxpayers who want to leverage tax planning, business structuring, and optimization to save on taxes while staying compliant.
These services vary in complexity, expected added value, and regulatory risk involved. For these reasons, the cost brackets vary, and even the payment plans. One firm may use an hourly rate while another prices the services using flexible packages. Here are some of the typical cost brackets for tax planning and advisory services in Kenya:
- Hourly Consultation: KSh 3,000- KSh 14,500 per hour. This is common with senior tax partners and specialists.
- Fixed Tax Advisory Packages: KSh 20,000- KSh 60,000 per assignment.
- Monthly Retainer Arrangements: KSh 10,000- KSh 50,000 plus.
KRA Audit Support
KRA initiates an audit to verify a taxpayer’s compliance with the Income Tax Act, VAT Act, and other tax laws. A KRA agent provides professional support during this legal process to enhance your chances of a favorable outcome. Audit support includes reviewing the Notice to Audit, organizing accounting records, and managing correspondence on your behalf. Here are the estimated costs of KRA audit support:
- Hourly Billing: KSh 5,000- KSh 15,000 per hour, depending on the seniority of the tax agent.
- Monthly Retainer: If it’s an ongoing audit, the agent may ask for a monthly retainer between KSh 30,000 and KSh 150,00 plus.
- Fixed, One-time Fee (for SMEs): KSh 50,000- KSh 250,000 plus.
- Large Corporate Audits: Hundreds or millions of shillings, depending on the complexity.
Several factors influence the cost of hiring a KRA tax agent for audit support. These are:
- Number of tax heads, e.g., VAT, Corporate, Withholding, and PAYE tax.
- Number of years under review.
- The quality of the client’s bookkeeping.
- Transfer pricing.
- The volume of transactions.
Tax Dispute Representation
A KRA tax agent provides professional support and representation on all stages of tax dispute resolution with KRA. These stages include objection, alternative dispute resolution (ADR), appealing to the Tax Appeals Tribunal (TAT), and litigation at the High Court and beyond. Below is the estimated cost of tax dispute representation:
Objection Stage
Here are the typical market costs at this stage:
| Taxpayer Category | Estimated Costs (KSh) |
| Individual | 30,000- 120,000 plus |
| SMEs | 75,000- 250,000 plus |
| Large Companies/Corporations | 250,000- 1,000,000 |
Alternative Dispute Resolution (ADR) Stage
Below are the estimated costs at the ADR stage:
| Taxpayer Category | Estimated Costs (KSh) |
| Individual | 50,000-150,000 |
| SMEs | 100,000- 300,000 plus |
| Large Companies/ Corporations | 300,000- 1,000,000 plus |
Tax Appeals Tribunal (TAT) Stage
Taxpayers can file a case at the Tax Appeals Tribunal if they aren’t satisfied with the objection decision or the ADR fails. The TAT stage is a high-risk stage because the tax disputes now become a legal issue and not an accounting discussion. A KRA tax agent helps you navigate this complex stage in various ways, including legal analysis of the case, preparing written submissions, and representing you before the Tribunal. Here are the estimated costs of hiring a KRA tax agent for TAT representation:
| Taxpayer Category | Estimated Cost (KSh) |
| Individual | 100,000- 350,000 plus |
| SMEs | 150,000- 500,000 plus |
| Large Companies/ Corporations | 500,000- Several Millions |
The costs at this stage vary greatly because of the high stakes of a TAT case. The factors influencing the costs include the disputed tax amount, the tax period/years, the complexity of the statutory interpretation, and the expert witnesses required.
High Court and Beyond Stage
If you are dissatisfied with the TAT decision and still believe the Kenyan laws could give you a favorable outcome, the next stage is appealing to the High Court and Court of Appeals. A KRA tax agent can still provide helpful support at this stage, alongside legal counsel. Here’s the typical cost range at this stage:
| Taxpayer Category | Estimated (KSh) |
| Individual | 300,000- 1,000,000 |
| SMEs | 500,000- 2,0000,000 plus |
| Large Companies/Corporations | Over 1,000,000 |
The cost increases with the length of the appeal. Long-running appeals cost more.
Factors That Influence the Cost of Hiring a KRA Tax Agent in Kenya
The cost of hiring a registered tax agent in Kenya depends on the following factors:
- Complexity of the tax matter: Multiple tax heads increase workload and consequently the cost.
- The disputed tax amount: The higher the tax exposure, the higher the risk and the overall cost.
- Stage of engagement: Tax filing and advisory costs are less than those of KRA audits and tax dispute resolution.
- Quality of record keeping: Incomplete or disorganized records increase the billable hours and consequently the overall cost.
- Expertise required: Tax filing doesn’t require as much expertise as audits and litigation. Senior specialists and experienced tax advisors will charge premium rates.
Hiring a KRA Tax Agent in Kenya: Is It Worth It?
After discussing the cost of hiring a KRA tax agent in Kenya, the big question among taxpayers remains: Is it worth it? The simple answer is yes, absolutely. While it’s okay to manage tax compliance independently for simple returns, hiring a tax agent is crucial once your tax matters involve multiple incomes, multiple tax heads, KRa audits, and tax disputes.
As a registered KRA tax agent, we provide comprehensive tax services that protect your income, manage risks, and resolve tax disputes efficiently. Contact Gichuri and Partners to get a quote and secure world-class tax agent services in Kenya.
