Turnover Tax
A tax charged on gross business turnover within a band set in the Income Tax Act, rather than on profit.
Also called
You will also see this written as ToT and tot kenya. Kenyan businesses use these interchangeably in conversation even where the underlying things differ, which is worth knowing when someone tells you what you need.
Where you meet this
Turnover Tax is charged on gross turnover rather than on profit, which matters more than the rate does. A business on thin margins pays on the whole sale rather than on what is left after cost, so whether this basis suits a business depends on its margin, not its size.
What it sits alongside
In Kenyan business records turnover tax sits alongside Kenya Revenue Authority, Income tax and Turnover. The pages for each explain how they connect.
Related terms
Common questions
What does Turnover Tax mean in Kenya?
A tax charged on gross business turnover within a band set in the Income Tax Act, rather than on profit.
Is Turnover Tax the same as ToT?
In everyday use Kenyan businesses treat these as the same thing. A tax charged on gross business turnover within a band set in the Income Tax Act, rather than on profit.
How do I know this information is current?
Tax rules in Kenya change with each Finance Act and with regulations made during the year. Before acting on any figure, deadline or threshold, check the current position on KRA's own website.
Sources
- officialIncome Tax Act (Cap. 470) — National Council for Law Reporting (Kenya Law), checked 2026-09-18
- officialKenya Revenue Authority — Kenya Revenue Authority, checked 2026-09-18