Skip to content
paybillke
Guide

Tax for Uber, Bolt and delivery drivers in Kenya 2026

Turnover tax or income tax, the 5% platform withholding, why the apps want your KRA PIN, eTIMS invoices, VAT, and the new licence for courier apps.

DW
by Reviewed by Josephine Njeri 6 min read Updated 29 October 2026Verified 29 Oct 2026

Which tax applies to you

Your yearly income from drivingTax
Up to KES 1 millionIncome tax: declare it in your annual return by 30 June
Over KES 1 million, up to KES 25 millionTurnover tax at 1.5% of gross, monthly, unless you opt out in writing
KES 5 million or moreVAT registration as well

Turnover tax is a final tax on gross income, so you cannot deduct fuel, repairs or the app's commission. If your costs are high, the normal income tax route with expenses may cost less. See turnover tax vs income tax and work out the monthly figure with the turnover tax calculator.

How to file and pay turnover tax

  1. Log in to iTax and file the turnover tax return for the month by the 20th of the next month (KRA).
  2. Generate the payment slip. It carries a payment registration number.
  3. Pay by M-PESA or at a bank using that number. The M-PESA steps are in how to pay KRA via M-PESA.

The KRA PIN and eTIMS

Every business has to issue electronic tax invoices through KRA's eTIMS, and that includes a driver giving a rider a trip. Uber handles this for you: when you upload your KRA PIN certificate, Uber's consent page says you authorise it to issue eTIMS invoices to your passengers and send the data to KRA on your behalf. In January 2026 drivers were told to upload the PIN or risk losing access to the app (The Star).

The 5% digital platform withholding

The Tax Laws (Amendment) Act, 2024 added withholding tax on income earned through a digital marketplace or platform, which the Act defines to include platforms linking clients with independent contractors and freelancers. The rate is 5% for residents and 20% for non-residents. Check your weekly payout statement to see whether your app deducts it, and keep the statements for your return.

VAT

  • You must register for VAT once your taxable sales reach KES 5 million a year (KRA). Most individual drivers are below this.
  • Bolt adds 16% VAT on its 18% commission, from 1 April 2025. That VAT is on Bolt's fee, not on your share of the fare.

New licence for courier and delivery apps

The Communications Authority has created a Courier Hailing Service Provider licence for platforms that link customers with licensed courier operators (CA market structure, 2026). It is the platform's licence, not the rider's:

  • Application fee KES 5,000, initial licence fee KES 100,000.
  • Annual fee of KES 100,000 or 0.4% of gross turnover, whichever is higher, plus a 0.5% universal service levy.
  • Valid for 10 years.

Riders' associations and saccos can hold a cheaper National Courier Operator licence, with a KES 30,000 initial fee.

Sources

See paybillke first on Google. Pick us as a preferred source and our updates show up more often in your Top Stories.

Add paybillke on Google