The Kenya Revenue Authority has stepped in to clear the air on tax filing obligations for salaried Kenyans who earn extra income on the side.
In a statement issued on Tuesday, February 3, the taxman reminded employees that their annual tax return must capture all earnings, not just income from formal employment. KRA noted that many workers supplement their salaries through side hustles, and these additional earnings must be declared alongside PAYE income.
The authority listed common sources of extra income that should be included in one consolidated return, such as freelancing, consultancy work, digital and online services, farming and agribusiness, rental income, and other small businesses or gigs.
According to KRA, submitting returns that reflect only employment income gives an incomplete picture of a taxpayer’s true earnings and may amount to non-compliance.
“If you are employed and also earn income from other activities, you are required to declare both your salary and any additional income in the same return,” the authority said, urging taxpayers to ensure full disclosure to avoid penalties.
The clarification comes amid growing participation in the gig economy, as more Kenyans turn to side businesses to supplement their monthly wages.
