Taxation now extended to schools as KRA asks for compliance data

A farming project in Nakeel Boys in Ongata Rongai, Kajiado. Some of these income generating activities in schools will be taxed soon as KRA has demanded data from both public and private schools.

KRA has issued a circular to the Ministry of Education (MoE) seeking comprehensive data on all government and private schools in basic education from January 1, 2021, to December 31, 2023.

The authority wrote a letter dated May 29, 2023 to that effect, expecting data fields related to the financial aspects of basic education institutions, including information on taxable income generated by these institutions and their tax compliance.

Their goal is to verify tax obligations fulfillment.

“The Kenya Revenue Authority (KRA) vide in their letter Ref. No. KRA/5/1002/5 dated 29th May, 2024 has requested the Ministry of Education to provide comprehensive data regarding the above institutions (all government and privates schools in basic education) for the period 1st January, 2021 to 31st December, 2023 to enable KRA verify the institutions have been funding their tax obligations, through assessing the taxable income that the institutions generated and monitoring tax compliance,” the circular reads.

Private institutions are expected to pay income tax unless they qualify for special exemption.

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By Frank Mugwe

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