As the June 30th tax filing deadline looms on the horizon, the Kenya Revenue Authority (KRA) has issued a stern "Buyer Beware" notice to the gig economy: your Withholding Tax (WHT) is not a final tax.

There is a common misconception among consultants, freelancers, and suppliers that the 5% deducted by clients settles their debt with the taxman. KRA is here to burst that bubble.

The Math of Debt

The authority clarified that WHT is merely an advance payment. Income tax is charged on a graduated scale, hitting 30% for higher earners. If you have only paid 5% via WHT, you still owe the remaining 25% to the state.

"Professionals must reconcile their accounts," the advisory reads. "Do not wait for a compliance check to discover you have a tax bill running into the millions."

Exceptions exist—such as dividends and interest, where WHT is indeed final—but for the vast majority of Kenyan service providers, the WHT certificate is just the first installment. With KRA's new aggressive data-matching systems, the gap between what you should have paid and what you did pay is easier to spot than ever before.

Forewarned is forearmed: Log into iTax, check your ledger, and balance your books before the June rush begins.