Martin M. Nyaga

22/04/2026

Over a year ago, I shared this message. Today, it is no longer theory—it is reality.
Many financial advisors from CIC, Britam, and other insurance companies are now facing additional tax assessments amounting to millions of shillings. This is a clear reminder that compliance and financial discipline are not optional.
As we continue to earn income, we must exercise discipline in how we manage it. It is wise to consistently set aside 30%–35% of income, depending on earnings. This is not just savings—it is protection against future tax obligations and financial pressure.
Anyone who continues to operate as before, without proper planning and discipline, risks severe financial strain that may lead to forced early exit from business or practice.

The time to act is now.

For those in business, I also hope you have already received the WhatsApp message from KRA’s chatbot (Shujaa). This reflects the growing shift toward a fully digital tax system.

KRA is increasingly using data analytics and artificial intelligence to monitor transactions, detect inconsistencies, and support real-time tax assessments.

This means compliance is no longer optional or based on assumptions. Businesses must maintain proper records, ensure accurate declarations, and embrace strong financial discipline at all times.

The era of assumptions is over—the systems are watching, and adjustments will be made where necessary.

Being a Person of Interest on Tax Matters
I recently came across the case of Dr. Kibet Sergon vs KRA, and it struck me as an eye-opener for many Kenyans. This case represents a growing issue where people fail to declare their additional sources of income yet continue to invest in expensive assets, pay high-end school fees, and live in upscale neighborhoods. All this while neglecting to declare such income during tax filings.
In Dr. Kibet Sergon’s case, KRA demanded Ksh 35 million in unpaid taxes. If this is just one individual, imagine the potential tax revenue if everyone complied with the law. The truth is, many of these tax policies existed before, and the current enforcement isn't about politics—it's about KRA becoming more efficient in cracking down on tax evasion.
Looking ahead to 2025, as we file tax returns for 2024, I see this as a year of risk for many professionals, especially those in industries like insurance Companies. To my friends who are financial advisors: brace yourselves.
Here's why:
Once you become a financial advisor, there’s a 10% withholding tax on commissions.
You are required to keep records of all your expenses and pay the remaining balance of up to 20% to 25% (to make a total of 30% to 35%).
Unfortunately, many advisors fail to maintain proper records, leaving them exposed to paying the maximum rate.
My personal advice:
If you’re a financial advisor or any professional working with commissions, hire a trustworthy tax accountant who will guide you honestly. Proper tax planning and bookkeeping are no longer optional—they are necessary.
Let’s also remember that education is key. Many tax challenges arise from ignorance, not defiance. If more people understand their obligations, we can reduce disputes and grow as a country.
Let’s not blame enforcement; instead, let’s comply and plan. This way, we avoid falling into traps and build a better financial future for ourselves and Kenya as a whole.

23/03/2026

Sometimes I wonder about the kind of thinking behind some policy proposals.

The idea that every business should automatically be subjected to VAT raises serious concerns. Many of the people making these decisions sit in big offices, but have they ever run a small business themselves?

In Kenya today, many small businesses are struggling just to survive. Some cannot even afford to employ one worker, yet we expect them to comply with complex VAT systems, monthly filings, and 16% tax obligations.

The current VAT threshold of KSh 5 million exists for a reason: to protect small traders and allow them to grow before facing heavy compliance requirements.

Policies should be informed not only by revenue targets but also by the real experience of entrepreneurs on the ground. If we are not careful, such decisions risk pushing many small businesses further into informality rather than bringing them into the tax system.

If amended, it will mean that even micro-enterprises will be obligated to charge VAT on taxable goods and services and remit the collections to KRA monthly

22/03/2026

10/03/2026

Today I would like to talk about a serious issue where people use other people’s personal details to conduct business ie register companies.

This has happened many times, especially to unemployed individuals who are asked to provide their personal details. These details are later used to register companies that participate in government tenders or conduct other businesses.

In some cases, the individuals are aware but cannot speak up because the person using their details is someone influential or close to them. In other cases, people are completely unaware that companies have been registered in their names and that they have been listed as directors.

This is a very serious risk, because legally the person whose details are used becomes responsible for the company. If the company fails to pay taxes or comply with statutory obligations, the directors may face serious legal and financial consequences in the future.

Many businesses operate this way without paying taxes or meeting statutory requirements. Eventually, the burden falls on the individuals whose names appear as directors of those companies.

I have seen this happen to many people. My advice is that everyone should visit the Kenya Revenue Authority (KRA) office or send an email requesting a list of all companies registered under their PIN and their current tax status. This will help you confirm whether your personal details have been used to register any companies.

When problems arise, many of the people you trusted may switch off their phones or disappear, leaving you to deal with the consequences alone.

It does not matter if today you do not have money or resources. Your future is bright, and you should protect your name, your identity, and your financial future. Be very careful about sharing your personal details, and never allow them to be used to register companies unless you fully understand the responsibilities involved.

16/02/2026

As we grow older, retirement is coming sooner than we think.
Let us build companies that will support us — not businesses that stress us, collapse early, or increase pressure in our lives.
Instead of working for companies forever, let us build companies that will one day work for us.
Over the years, I have helped many people register companies, partnerships, and sole proprietorships.
Unfortunately, many businesses do not fail because of lack of capital —
they fail because they operate like side hustles without systems.
Registration is not structure.
A certificate is not governance.
Capital alone is not sustainability.
Many people also don’t realize that once you register a company, there are ongoing obligations:
• Annual returns must be filed with the Registrar of Companies.
• Tax returns must be filed with KRA — even if the company made no profit.
• Payroll must be properly documented.
• Statutory deductions must be remitted on time.
• Every expense must be supported with a valid KRA invoice.
We are now in a new era of taxation and compliance.
The system is tighter.
The margin for informality is shrinking.
Businesses that continue operating without proper structure may struggle in the coming years — not because they lack money, but because they lack systems.
The future belongs to structured businesses.
Separate personal and company finances.
Create clear policies.
Install reporting discipline.
Understand your compliance obligations.
Operate professionally.
Let us build institutions that will support us in our old age —
businesses that generate stability, not chaos.
I believe in building institutions — not just registering companies.
Structure is no longer optional.
It is survival

02/02/2026

No matter the stage of life we are in—whether young, newly married, building a career, running a business, or growing older—we all face challenges. Life has struggles for everyone.
What we see on social media is often not the full picture. Many people are silently struggling in marriage, business, jobs, and for some, it’s a combination of many challenges at once. Others are facing serious personal crises, sometimes made worse by decisions that were not taken when they should have been.
As of today, what has already happened cannot be changed. Yesterday is gone.
But today is still in our hands.
The best approach is to start now and move forward, because the decisions we make today will shape tomorrow. Let us not remain stuck in the same place because of fear.
Keep going. Choose courage. Choose progress.
Wishing you all an amazing day filled with God’s blessings 🙏

06/01/2026

For many years, this will be one of the toughest periods for businesses and individuals when it comes to tax compliance.

Many people who depend on business income will face a difficult time starting 2026, and the next five years will be very different from what we were used to.

For a long time, many people have been filing tax returns through cyber cafés without fully understanding what they were doing. Let me give a simple example using financial advisers.

Financial advisers are charged withholding tax of 10% on all commissions earned. However, they are also required to keep proper records of all business expenses, supported by eTIMS / KRA-compliant invoices.

The problem is that many people did not do this in 2025. When returns are filed, unsupported expenses will be rejected. This means some people will be required to pay an additional 20% income tax, bringing the total tax burden to 30% of their commissions.

👉 Example:
If a financial adviser earned KSh 1,000,000, they may end up paying an additional KSh 300,000 in tax, plus penalties and interest.

The same applies to consultants.

Consultants are charged withholding tax of 5% on professional fees earned. However, they are also expected to keep proper records of all business expenses, supported by eTIMS / KRA invoices.

If expenses are not supported, they may be required to pay an additional 25% income tax, bringing the total tax burden to 30% of their income.

👉 Example:
If a consultant earned KSh 1,000,000, they may end up paying an additional KSh 250,000 in tax, plus penalties.

It is important to understand your tax obligations, including:

PAYE
Income Tax
VAT
Turnover Tax (TOT)

The challenge is that when these commissions and consultancy fees were paid, most people had already:

Paid loans
Paid school fees
Bought household items
Met daily expenses

Very few people had the discipline to set money aside or keep proper records.

The worst-case scenario is that as we approach the end of 2026, many bank accounts may be frozen by KRA during audits and reconciliations.

Many people think leadership is the main problem, but the truth is that tax compliance is becoming a much bigger issue for business people.

What happened last year has already happened—nothing can be changed now.
We are already in January, and the focus must be on protecting income for this year and going forward.

Wishing you a blessed 2026.
Remember—talk to your tax person early, not when it’s too late.

21/11/2025

⚠️ Kenya Businesses: 2025–2026 Will Be Tough Without Tax Planning

With the way things are unfolding in tax matters, many businesses — especially wholesalers — may close next year. Most have not started proper tax compliance or tax planning.

This week I spoke to a wholesale owner about TOT, Income Tax, and VAT. On the surface, TOT looks simple. But when we calculated profit on just maize flour, we realised TOT would put the business into a serious loss.

Income Tax seemed better, but it has its own challenges. Not all goods can get eTIMS invoices — especially items like eggs and farm products. Yet from 2025 onwards, farmers and small suppliers will be required to issue eTIMS.

The truth is:

✅ If you run a business, you MUST start tax planning now.

Whether you earn commission, run wholesale/retail, offer professional services, or depend on clients who require eTIMS to pay you — compliance is no longer optional.

By 2026, many accounts may end up blocked by KRA due to non-compliance.

As we prepare for this new era, KRA policymakers must ensure they have qualified staff who understand how real businesses work — not just from textbooks but by visiting places like Gikomba, Kirinyaga Road, and rural markets where the real economy lives.

Let’s be prepared. The future of many businesses depends on it.

11/11/2025

⚠️ eTIMS — A Costly Lesson for Many ⚠️

The issue of eTIMS might turn out to be one of the costliest mistakes that many will have to pay for. While the system was introduced to enhance compliance, the lack of preparedness and implementation challenges could bring serious penalties and disruptions for businesses.

As a country, we might go beyond our set budget, but sadly, it will be at the expense of ordinary Kenyans.

Let’s remember — this isn’t about any government; it’s about technological change. If well embraced, it can benefit Kenyans through transparency and better systems.

Let’s stay alert, compliant, and informed.
Together, we can adapt and help others do the same. 💪🇰🇪

21/10/2025

Good Morning, Friends!

As I begin this beautiful day, I wish you God’s blessings, favor, and victory in everything that aligns with His divine purpose for your life. 🙏

Many times we make mistakes — but don’t let them hold you hostage. As long as you’re breathing, God has given you another amazing chance to rise again and do better. Step above your fears, doubts, and regrets.

💫 Remember, you have only one life to live. Don’t compare it with others — you don’t know how long you’ll be on this earth, and you don’t know if what they’re doing is already their purpose.

Walk boldly in yours, and let every day count.

20/02/2025

Being a Person of Interest on Tax Matters
I recently came across the case of Dr. Kibet Sergon vs KRA, and it struck me as an eye-opener for many Kenyans. This case represents a growing issue where people fail to declare their additional sources of income yet continue to invest in expensive assets, pay high-end school fees, and live in upscale neighborhoods. All this while neglecting to declare such income during tax filings.
In Dr. Kibet Sergon’s case, KRA demanded Ksh 35 million in unpaid taxes. If this is just one individual, imagine the potential tax revenue if everyone complied with the law. The truth is, many of these tax policies existed before, and the current enforcement isn't about politics—it's about KRA becoming more efficient in cracking down on tax evasion.
Looking ahead to 2025, as we file tax returns for 2024, I see this as a year of risk for many professionals, especially those in industries like insurance Companies. To my friends who are financial advisors: brace yourselves.
Here's why:
Once you become a financial advisor, there’s a 10% withholding tax on commissions.
You are required to keep records of all your expenses and pay the remaining balance of up to 20% to 25% (to make a total of 30% to 35%).
Unfortunately, many advisors fail to maintain proper records, leaving them exposed to paying the maximum rate.
My personal advice:
If you’re a financial advisor or any professional working with commissions, hire a trustworthy tax accountant who will guide you honestly. Proper tax planning and bookkeeping are no longer optional—they are necessary.
Let’s also remember that education is key. Many tax challenges arise from ignorance, not defiance. If more people understand their obligations, we can reduce disputes and grow as a country.
Let’s not blame enforcement; instead, let’s comply and plan. This way, we avoid falling into traps and build a better financial future for ourselves and Kenya as a whole.