The Side Hustle Checklist: KRA, NSSF, SHA — What You Actually Need

If you're earning money on the side in Kenya—whether freelancing, consulting, selling online, or running a small jua kali operation—you're not doing yourself a favour by staying quiet about it. Freelance, gig and self-employed income is taxable income, whether it arrives by bank, M-Pesa or cash. Three agencies will expect you to register: the Kenya Revenue Authority (KRA) for tax, the National Social Security Fund (NSSF) if you have employees, and the Social Health Authority (SHA) for health cover. None of them are optional.

Most people don't know the difference between these three, when you actually need them, or what happens if you skip one while sorting another. Get it wrong and you'll be paying penalties later. Get it right and you can sleep without the filing cabinet of worry.

Start with KRA: Register Your Income

Any individual who is employed, self-employed, a business owner, a landlord, or who owns property or investments in Kenya needs a KRA Personal Identification Number (PIN). Getting a KRA PIN in Kenya is free and can be done online in a matter of minutes through the iTax portal. Go to itax.kra.go.ke, click 'New PIN Registration' on the dashboard, and provide your national ID, email and phone number. Done.

Once you have a PIN, you're expected to file an annual return by June 30 each year. Everyone with a PIN files an annual Resident Individual income tax return by 30 June for the previous year (Jan-Dec) - even a NIL return. If you earned nothing in a year, file a NIL return anyway. Do not ignore the deadline; late filing penalty is KES 2,000 per month for individuals, or 5% of the tax due — whichever is higher.

If your annual turnover is below KES 5 million, you can register for Turnover Tax (TOT), which means paying 1.5% of your gross sales each month instead of calculating profit and loss. Each month, go to iTax, Returns, File Return, select 'Turnover Tax', enter gross sales, and submit. Generate a Payment Registration Number (PRN) and pay via M-Pesa KRA Paybill 572572 (account = your PRN) or your bank, by the 20th of the following month. This keeps things simple when your business is still small.

If you're already employed and have a day job, your side income stacks on top. If employed, but have additional income, declare your employment income together with any additional income, for example, freelance, consultancy, online services, farming, or other income-generating activities. Your employer files your PAYE on the salary; you add the side hustle income on your annual return. KRA tax experts on Kaziiko can walk you through this step if you're uncertain.

NSSF: Only If You Have Employees

Here's the key distinction most side hustlers miss. If you are self-employed or in the informal sector (jua kali), you are not required by law to contribute — but you can register voluntarily and build your own retirement savings through the NSSF voluntary scheme. You don't need NSSF just because you're side hustling. You need it when you hire someone.

If you employ even one person in Kenya, NSSF registration isn't optional — it's the law. Yet many small business owners only discover this after receiving a compliance notice or facing penalties. Once you're past the solo stage and hiring a part-time or casual worker (even for a few hours a week), the business itself needs an NSSF employer number. This is done at any NSSF branch or via the NSSF eService portal, and you'll need your certificate of incorporation/business registration certificate, KRA PIN certificate for the business, a copy of the director's/owner's ID and KRA PIN, plus physical business address and contact details.

If you're not at the point of hiring, skip NSSF for now. If you do want to save voluntarily, for the unemployed but willing to register and self-employed, you will only need your ID, phone number, and KRA PIN. Your employer information will not be needed in your situation. You can register online or via USSD on nssf.or.ke. NSSF registration experts can guide you if the process feels tangled.

SHA: Mandatory for Everyone

All Kenyans—employed or unemployed—are mandated to register with SHA. There's no exemption for side hustlers, and unlike NSSF, you can't opt out. The Social Health Authority (SHA) replaced NHIF in October 2024.

The fastest way to register is dial *147#, enter your national ID number, confirm your details, add your dependants, and set your PIN. This works on any phone with no internet, which is why it is the most common route. You can also register at sha.go.ke, at a Huduma Centre, or at any SHA branch.

For a self-employed person, contribution is 2.75% of income, minimum KES 300 a month. If you earn KES 20,000 a month from your side work, that's KES 550. You must complete a Means Test yourself to activate your cover. This guide explains every step, and exactly what to do when the Means Test rejects you. Registration itself is free; you pay only after activation. Pay your premium via M-Pesa. The SHA Paybill number is 200222, with your ID number as the account number.

A common mistake is registering via *147# and then stopping. You haven't fully registered until you complete the Means Test on the Afya Yangu portal (afyayangu.go.ke) and make your first payment. Without those steps, your cover sits "Pending" and you can't use it at a hospital. SHA registration experts can verify your status if you're unsure whether you're fully live.

The Timeline: What to Do Now

This week: Get your KRA PIN on itax.kra.go.ke if you don't have one. It's free and takes 10 minutes.

This month: Register for SHA via *147#, complete the Means Test on Afya Yangu, and pay your first contribution via M-Pesa Paybill 200222.

By June 30 next year: File your first KRA return on iTax. If you're on TOT, file monthly by the 20th.

Only if you're hiring: Register with NSSF at your nearest branch or online at nssf.or.ke. Do this before you pay your first employee.

Each system has its own portal, its own deadlines, and no integration between them. You'll need to track three separate obligations. Use a checklist, set phone reminders, or hire help—but don't rely on one agency to remind you about the others.

Frequently Asked Questions

Can I register with KRA, NSSF and SHA all at once?

No. KRA is first (you need your PIN for NSSF and SHA anyway). SHA and NSSF can happen around the same time, but NSSF only matters if you're hiring. Complete KRA and SHA—don't skip SHA just because you think you'll sort it later.

What if I register for KRA but not SHA?

KRA will tax you. SHA won't cover you. You'll still owe both. The Social Health Insurance Act makes SHA registration mandatory for all Kenyans. If you go to hospital unregistered, you'll pay the full bill yourself.

Do I pay these fees on top of my side hustle income?

Yes. KRA takes a percentage of what you earn (1.5% on TOT, or tax on profit if you're standard rate). SHA costs KES 300-500 a month depending on your income. These come out of your earnings, so budget accordingly. Your side hustle income should be large enough to cover them and still leave you profit.

Which one gets me in trouble first if I don't comply?

KRA. They audit M-Pesa records and bank statements. Missing a KRA deadline or not declaring income will cost you penalties quickly. SHA isn't enforced the same way yet, but that could change. NSSF matters only if you have employees, in which case that's your priority. Don't gamble on any of them.