Nairobi has a large freelance workforce - designers, developers, writers, consultants and people working online for clients abroad. Working for yourself means handling the paperwork an employer would otherwise do.

Get set up

  • A KRA PIN - clients will ask for it before paying you.
  • A business name, if you want to trade under a name other than your own. It costs KES 950 through the Business Registration Service. See Registering a business.
  • eTIMS. Invoices must be issued through KRA’s electronic tax invoice system. There is a free app for small businesses.
  • A separate bank account and M-Pesa till or paybill, so business money is easy to track.

Kenyan clients and withholding tax

Kenyan companies usually deduct withholding tax from professional and consultancy fees - 5% for residents - and pay it to KRA for you. Collect every withholding certificate: on your annual return it counts towards the tax you owe. Work out what you will receive with the withholding tax calculator.

Clients abroad

  • Getting paid. Common routes include payment platforms linked to a Kenyan bank account or M-Pesa, international bank transfers, and money transfer services. Compare fees and exchange rates - see Opening a bank account.
  • Tax. Income from foreign clients is still taxable in Kenya if you are resident here. Declare it on your annual return.

Tax

You file an annual income tax return on iTax by 30 June, declaring your freelance income and claiming the withholding tax already deducted. Keep records of income and expenses, which reduce your taxable profit. Small businesses may be able to use turnover tax instead - ask an accountant, as some professional services are excluded. VAT registration is compulsory once turnover passes KES 8,000,000 a year.

Your own safety net

No employer means no automatic pension or health cover:

  • SHIF. Register with SHA as a self-employed member and contribute, so you and your family are covered.
  • NSSF. Self-employed people can make voluntary contributions.
  • Savings. Keep a buffer for slow months - see Saving and investing.

Contracts and getting paid on time

Agree scope, price, deadlines and payment terms in writing before you start. Ask for a deposit on larger jobs, invoice promptly, and follow up in writing.

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