Bodaboda Tax in Kenya: How Motorcycle Taxi Riders File KRA Returns

If you ride a motorcycle for hire in Kenya — whether full time or side income — you owe the KRA a tax return. No exceptions. Most bodaboda riders do not file, and KRA knows. The revenue authority now cross-checks declared income against electronic invoices, asset records, and import data to catch those who slip through. Filing correctly is quicker than dealing with KRA later.

Who must file. Every individual with a KRA PIN is required to file annual income tax returns, regardless of whether they earned any income during the tax year. This includes self-employed individuals. Bodaboda riders are self-employed. You need a KRA PIN to file anything. If you do not have one, register on itax.kra.go.ke before you start.

When to file

The return for each year of income is due by June 30 of the following year. Filing opens on January 1. So for 2025 income, you file between January 1 and June 30, 2026. It sounds like months away. It is not. The last week before the deadline means long queues at KRA offices and the portal slowing down. Start in March.

What you need to file

Get your records straight first. Self-employed people need business records: income records, eTIMS invoices for expenses, and withholding tax certificates. Write down every shilling earned from fares. Keep receipts for fuel, repairs, spare parts, insurance, and licence renewal. Do not guess — KRA now checks your reported income against your eTIMS records and withholding certificates.

You will also need your iTax login. Use "Forgot Password" on itax.kra.go.ke if you are locked out; the reset link goes to your registered email. Have this sorted before you file.

How to file on iTax

Log in at itax.kra.go.ke with your KRA PIN and password. Navigate to Returns, then File Return. Select Income Tax, then Resident Individual. Choose the year you are filing for (for example, 2025 income).

Click Download to get the Excel returns form to your computer. Open it in Microsoft Excel and enable macros when prompted. Do not use Google Sheets. This is not a suggestion. Google Sheets breaks the form.

Open the Business Income section of the form. You will see rows for:

• Gross turnover. Your total income from fares in 2025.
• Cost of sales. Direct costs, like fuel.
• Business expenses. Repairs, spare parts, insurance, annual licence, mobile phone for orders.
• Capital allowances. If you bought the motorcycle during the year.
• Withholding tax credits. Taxes your clients (ride hailing apps, matatu operators) already deducted at source.

Be honest. From 1 January 2026, the KRA implemented iTax system-based validation of income and expenses at the point of filing, with declared amounts being cross-validated against eTIMS records, withholding tax data and customs import records. If you claim KSh 50,000 in spare parts but your eTIMS records show KSh 2,000, the system flags it. Penalties are steep.

Validate to check for errors, then Generate to create the .zip file. Return to iTax, go to Returns > File Return, upload the .zip file, and click Submit. Download and save the Acknowledgement Receipt — it is your proof you filed.

What about deductions and reliefs

Unlike salaried workers, you do not have PAYE deducted by an employer. The four payroll items every employer must withhold by law in 2026 are NSSF, SHIF, the Affordable Housing Levy, and PAYE. As self-employed, you are not in payroll. You calculate tax on the profit you make — income minus all allowable business expenses.

Track every expense: petrol, oil, brake pads, tyres, engine servicing, motorcycle registration, third-party insurance, helmet, spare helmet for passengers, mobile phone airtime for customer calls. All of these are deductible. Personal expenses are not — do not try to claim your lunch or rent for your home.

If you used a motorcycle loan to buy the bike, interest on the loan is deductible. Principal repayment is not.

If you owe tax

After you submit, iTax tells you whether you owe money or are due a refund. If you owe, generate a payment slip (PRN) under Payments > Payment Registration and pay via M-PESA (Paybill 222222, your PRN as the account number) or bank. Pay it. Late payment attracts penalties. Use the KRA penalty calculator to see what you are facing if you delay.

If you missed the deadline

The June 30 deadline is not flexible. But do not panic. The Nil Filing Return option has been reinstated for the 2025 returns filed after March 31, 2026. KRA's Nil Return option will apply to January–December 2025 income tax returns filed after March 31, 2026. If you file late, you can file a return but expect penalties.

File now anyway. Even late, it is better than not filing at all. KRA can pursue late filers, but the pursuit takes time. Tax evasion — lying on your return or not filing — carries criminal penalties. Failure to declare taxable income is a tax fraud under the Tax Procedures Act. If convicted, you face a fine not exceeding KSh 10 million or double the tax evaded, whichever is higher, or imprisonment for up to ten years, or both.

A KRA tax expert on Kaziiko can help you file correctly if the form feels overwhelming. Many riders have never filed before and the rules are dense. It is worth the fee.

Frequently Asked Questions

Do I need to register my motorcycle with KRA before filing?

No. You need a KRA PIN, which you can get at any KRA office or on the iTax portal. Your motorcycle is registered with the National Transport and Safety Agency (NTSA) for road use. These are separate. File with your PIN.

What if I earn less than KSh 50,000 a year?

You still must file. There is no income threshold that lets you skip the return. Every individual with a KRA PIN is required to file annual income tax returns, regardless of whether they earned any income during the tax year. Even if you rode only a few days, file a nil return or declare what you earned.

Can I deduct my phone, helmet, and fuel from tax?

Yes. Phone (if used to take orders), helmet, and fuel are all business expenses. Keep receipts. Enter them in the Business Expenses section of the Excel form. Personal items — clothes, food — are not deductible, even if you bought them while working.

What if KRA says my income seems too high or too low?

KRA's Income and Expenditure Verification programme pulls data from multiple sources — including eTIMS invoices, withholding tax certificates and import documentation — to verify figures declared by taxpayers. If your declared income looks out of line with your visible activity (bike purchase, fuel bought, parts imported), KRA will ask questions. Have your receipts ready. Be honest on your return from the start.