It’s that time of the year again. The KRA deadline is looming, and you’re staring at your iTax dashboard, wondering if you should just figure it out or call that guy your cousin recommended. The struggle is real for every employed Kenyan, freelancer, or business owner.
This article breaks down the real deal of filing tax returns yourself versus hiring a tax agent in Kenya. We’ll look at the cost, stress, time, and risks of each option so you can make a choice that won’t leave you with a penalty notice or an empty wallet.
What Does Filing a Tax Return in Kenya Actually Mean?
Before we dive into the battle of DIY vs. agent, let’s be clear on what we’re talking about. Filing your annual tax return is a mandatory report you submit to the Kenya Revenue Authority (KRA). It’s not just about PAYE from your job.
It’s you declaring all your income from the past year—side hustles, rental income, freelance gigs—and claiming any allowable deductions. Getting it wrong can mean penalties, audits, or even being locked out of your iTax account. No pressure!
The DIY Route: Filing Tax Returns Yourself
Choosing to file your own returns means you’re taking full control. You log into iTax, navigate the forms, and submit everything personally. It’s a growing trend, especially with younger, tech-savvy Kenyans.
Pros of Filing Yourself
You Save Money: The most obvious benefit. You avoid paying a tax agent’s fees, which can range from Ksh 2,000 to Ksh 20,000 or more. That’s cash you can use for something else.
You Learn the System: Dealing with iTax directly forces you to understand the process. This knowledge is power for future filings and managing your financial affairs.
Full Control and Privacy: You handle your sensitive financial data yourself. No sharing bank statements or M-Pesa statements with a third party.
Convenience for Simple Returns: If your income is straightforward—just one employment certificate—the process on iTax can be relatively quick.
Cons of Filing Yourself
High Risk of Errors: Tax laws are complex. Misunderstanding a deductible expense or filling the wrong form can lead to underpayment or overpayment.
Time-Consuming and Frustrating: If you have multiple income streams, expect to spend hours figuring it out. The iTax site can also be slow, especially near the deadline.
No Expert Backup: If KRA sends a query or compliance notice, you’re on your own to resolve it. This can be incredibly stressful.
Missed Opportunities: A good agent knows legal loopholes and reliefs you might not, like allowable expenses for content creators or digital marketers.
Hiring a Tax Agent: The Professional Touch
This means hiring a certified tax agent or firm registered with the KRA and the Institute of Certified Public Accountants of Kenya (ICPAK). They handle the entire process for you.
Pros of Hiring a Tax Agent
Accuracy and Peace of Mind: They know the Tax Act inside out. Their work minimizes errors, reducing your risk of penalties and audits.
Saves You Time and Stress: You simply provide your documents. They do the heavy lifting, freeing you up to focus on your work or life.
Expert Representation: If KRA has any issues, your agent deals with them. They speak the language and know how to navigate Times Tower or your local KRA office.
Strategic Tax Planning: Beyond filing, a good agent can advise you on how to structure your finances to be more tax-efficient for the coming year.
Cons of Hiring a Tax Agent
It Costs Money: Their expertise comes at a price. This is a direct cost you must budget for annually.
Finding a Trustworthy Agent: Not all agents are equal. You must do due diligence to avoid quacks who might disappear or make mistakes with your details.
You’re Out of the Loop: If you’re not careful, you can become completely dependent. You might not learn the basics of your own tax obligations.
Communication Hurdles: A slow or unresponsive agent can cause last-minute panic as the June 30th deadline approaches.
The Kenyan-Specific Breakdown: Costs, Seasons, and Real Talk
Let’s get local. The decision isn’t just abstract; it’s shaped by our unique context. First, let’s talk money. A tax agent’s fee isn’t fixed. For a simple return with one employment slip, you might pay between Ksh 1,500 and Ksh 5,000 in towns like Nakuru or Eldoret.
In Nairobi, for a complex return with business income, rental income, and capital gains, fees can easily hit Ksh 15,000 to Ksh 50,000. Weigh this against the potential penalty for late filing: a minimum of Ksh 10,000 or 5% of the tax due, plus 1% interest per month. Suddenly, an agent’s fee can look like an insurance policy.
Now, think about our seasons. The tax return deadline is June 30th. This smack in the middle of the cold season in many regions. It’s also a time when many are recovering from school fees paid in January. The “financial hangover” is real. This pressure often forces last-minute decisions.
Here’s a practical tip only a local would know: If you plan to hire an agent, don’t wait until mid-June. Contact them by April, after the long rains start. They are less busy, can give you better attention, and might even offer a slight early-bird discount. By June, their phones are off the hook, and prices are firm.
Also, beware of the “boda boda” tax consultant—the unregistered person offering cheap services. If they mess up, KRA will come for you, not them. Always verify their PIN and check if they’re listed on the KRA Tax Agents portal or have an ICPAK membership.
Who Should Definitely File Their Own Tax Returns?
DIY filing is a solid choice for a specific group. If your financial life is simple, you can probably handle it.
- Employees with one TAXABLE income source (just one P9 form from your employer).
- Students with minimal or no income who are filing for the experience or to keep their KRA profile active.
- Tech-comfortable individuals who are patient and good at following online instructions.
- Anyone with a very tight budget where the agent’s fee would cause significant strain.
For this group, the process is largely about data entry. The key is to have all your documents—P9, mortgage interest certificate (if any), and insurance relief certificates—scanned and ready before you login.
Who Should Seriously Consider Hiring a Tax Agent?
For others, the cost of an agent is a justified business expense. If you fall into these categories, think twice about going solo.
- Business Owners (Small and Large): You have expenses, assets, depreciation, and complex deductions.
- Freelancers & Gig Workers: You have multiple clients, irregular income, and allowable home office expenses.
- Landlords with Multiple Properties: Calculating rental income, agent fees, repair costs, and mortgage interest needs expertise.
- Anyone with Investment Income: This includes dividends, interest, or capital gains from selling land or stocks.
- People Who Simply Hate Admin: If the thought of iTax gives you anxiety, outsource it. Your peace of mind has value.
How to Choose a Good Tax Agent in Kenya
If you decide to hire, don’t just pick anyone. Do your homework to avoid future headaches.
- Check Credentials: Ask for their KRA Tax Agent PIN and ICPAK membership. Verify online.
- Get Referrals: Ask for recommendations from trusted friends in a similar business or income bracket.
- Ask About Their Specialty: Some agents specialize in SMEs, others in salaried employees or expatriates. Find a match.
- Discuss Fees Upfront: Get a clear quote in writing. Understand what it includes (just filing, or also handling queries?).
- Meet Them: If possible, have a physical or virtual meeting. Gauge their responsiveness and professionalism.
Conclusion
The choice between filing tax returns yourself and hiring a tax agent in Kenya boils down to your personal mix of complexity, time, and budget. If your taxes are simple and you’re willing to learn, DIY can save you cash. But if your income streams are multiple or complex, a good agent is worth every shilling for the accuracy and peace of mind they provide.
Don’t let the June deadline sneak up on you. Assess your situation now, gather your documents early, and make your move—whether that’s bookmarking the iTax guide or calling a certified professional. Got questions or your own experience with filing? Share it in the comments below to help others in the community navigate this annual rite of passage.