Paying for digital service tax in Kenya
Services under the digital service tax (DST) 2021

Fistly, in order to address the changing business models in a digital-first world and to expand the tax base, the Digital Service Tax (DST) was introduced by the Kenya Revenue Authority(KRA). Moreover, this tax is payable by any person who derives income from services through a digital marketplace at the rate of 1.5% of the gross transaction value according to KRA effective January 2021.

Therefore, the Digital Service Tax for the preceding month is payable on or before 20th of the next month. For instance, March Digital Service Tax payment is due on or before 20th April for income accrued from services offered through a digital marketplace for the month of March.

How to file for Digital Service Tax Yourself on iTax Online platform

  1. Log in to your iTax profile
  2. Click on Payment Registration on the landing page or on the Payments drop down menu
  3. Proceed to the next step
  4. An e-payment registration form will be displayed
  5. Follow the sequence: Income Tax>Digital Service tax>Self-Assessment Tax>Tax period (Year and Month)
  6. Follow with your Monthly Turnover Value and select your payment method.
  7. Select your payment method and confirm your details.
  8. Complete the payment process through your preferred payment method.

Services under the DST

With the introduction of the DST, services that are offered through online marketplaces are expected to experience higher prices to reflect the impact of the digital tax. For residents and companies with a Permanent Establishment in Kenya, the DST will be an advance tax to be offset against the income taxes due in the course of the financial year. In the case of non-residents and companies without a Permanent Establishment in Kenya, it would be collected and remitted by agents appointed by the commissioner of domestic taxes.

To sum up, the following services attract Digital Service Tax according to Kenya Revenue Authority:

Services and Goods Targeted Under the Digital Service Tax

  1. Subscription-based media including news, magazines and digital content.
  2. E-commerce platforms.
  3. Online ticketing services.
  4. Provision of search engine services.
  5. E-learning platforms offering online distance training.
  6. Sale, licensing or other forms of monetizing data collected from Kenyan users.
  7. Streaming services among other forms of digital content.
  8. Any other service provided through a digital marketplace.

In conclusion, it is estimated small and medium enterprises account for more than 80 percent of all the jobs in the country and about 30 percent of the annual gross domestic product hence the push to cast a wider tax net. Through myNGOVO Advance you can be able to reduce your cash flow issues by accessing salary advance when you need it.

HR SOLUTION: Time and Attendance Management|TruAttendance

What is TruAttendance?

TruAttendance is a time and attendance software that can help entrepreneurs and business owners streamline their employee attendance, shift scheduling and management of leave requests. TruAttendance tools include a web-based advanced and intelligent management dashboard with live statistics that may be suitable for small teams and flexible enough for managing larger teams and a self-service employee mobile app ideal for employees to clock-in, apply for leave and also access their weekly schedules easily. TruAttendance can be able to manage employee time and attendance management workflows for companies in any industry, and can help those company automate their time and attendance processes.

TruAttendance is a modern attendance management solution. Complete with location geo-fencing capabilities, break-tracking and the ability for employees to clock out and provide context to the work place.

Can we automate attendance management in my industry?

Imagine this scenario: a field marketing lead has asked his field marketers to handout marketing stickers and notes at a certain mall, but because he is not on location he asks the team to send him pinned location from WhatsApp to confirm their location. Unbeknown to him, only half of the field marketing team has shown up, and they share their pinned location screenshots with those not in attendance. This not only reduces the productivity expected from this group but also a mild case of payroll fraud. Timesheet fraud which involves employees falsifying their timesheet submissions is one of the common types of payroll fraud faced by companies.

Why you should get a Time and Attendance Management system.

If you’re in charge of running a business, you may be tempted to cut costs by relying on spreadsheets and manual practices to track employee time and process payroll. However, doing so is likely to produce the opposite effect.

Multiple studies have shown that companies who process payroll manually have error rates from 0.5 – 2 percent.

A well-implemented time and attendance system saves an organization money, and the administrator from the headaches that come along with manual processes.

Beyond the cost-savings related to human error, here are other reasons to invest in an automated time and attendance solution:

Deter Time Theft 

There are many ways employees can steal time at work.

The practice of buddy punching, where one employee clocks in for another employee, is common among companies that use traditional time clocks. 

Then there are employees who take advantage by coming in late, leaving early, or taking extended breaks. While these minutes may seem insignificant, they add up over time. An automated time and attendance solution is your best defense against padded timesheets and inaccuracies.

Demonstrate Compliance

The labour laws of Kenya have made the ability to calculate and document hours worked by employees more critical than ever.

Employers are required to retain specific records containing timekeeping data, and payroll information. Cloud-based time and attendance solutions means that important records are readily available, should the employer be called upon to produce them.

Reduce Overtime Hours Worked 

Overtime is often a result of poor scheduling. Outdated and incorrect data can lead to poor utilization of employee time. With an automated time and attendance solution this can be prevented by setting alerts to identify when an employee is close to approaching overtime eligibility.

Eliminate Bias

Even managers with the best intentions can’t keep tabs on the comings and goings of the employees who report to them 100% of the time. Workers who consistently get to work on time and take the allotted time for lunch may resent those who take advantage yet fly under the radar without being caught. Automated timekeeping solutions ensure all employees are treated fairly when it comes to time worked.

Boost Employee Engagement 

Compensation is one of the key drivers of employee engagement so it’s important to get it right. Not only do time and attendance solutions increase the accuracy of your payroll, integrated solutions provide other benefits that boost engagement. Mobile solutions provide employees with the ease and convenience of clocking in from their smartphone or desktop. 

Still not convinced? If you need help determining what is best for your organization, get intouch with us to guide you through.

How to Apply for A Salary Advance Facility in Kenya

How do I apply for a salary advance?

Do you have an emergency that can be solved by getting access to a salary advance facility? You can get an early wage payment from the convenience of your phone. Through the myNGOVO standalone mobile app available on Google Playstore you can be able to apply for an advance payment straight to your MPESA instantly.

What Are the Requirements?

Namely:one must be an employee with a partner company with myNGOVO to enjoy interest-free advance payment. Furthermore, the ability to download the mobile application from Google Playstore and MPESA mobile wallet.

How does the early wage facility work?

You can be able to access early wage payments through the myNGOVO mobile app. This is for any employee whose employer has a partner relationship. This allows for employees to be able to access up-to 50% of their net salary. This is through our instant deposit mobile app. Because the reimbursement can be done by your employer hence you will never get any harassing messages from us.

Is the myNGOVO on-demand salary advance facility in Kenya a mobile loan?

No. myNGOVO advance facility is an extension of an employer’s commitment to employee well-being. With that, since it can be implemented as an employee benefit and with no interest charges, this is simply the ability to access your salary as you earn it through the platform.

How much of my salary can I access?

myNGOVO advance allows you to access up-to 50% of your net salary. This ensures there is never a scenario where an employee can go home with less than a third of their take-home salary.

How do I ask for salary advance payment?

myNGOVO advance is a revolutionary platform allowing you to access early wage payments through a mobile application. This ensures you never have to go to HR. Also, you don’t have to worry about writing letters asking for advance payment.

Access your salary advance conveniently with us

Call us today on 070504336

Employee time and attendance manager: TruAttendance

TruAttendance is an employee time and attendance management software solution with three modules. The modules are: leave management, clock-in/out and shift scheduling. The solution is localised for MSMEs in Kenya with a mobile app which can allow employees to clock in and out of work. Moreover, advanced management dashboard with live statistics can allow business owners to easily manage staff attendance, approve leave requests, export reports and streamlining workflows.

According to a National Economic Survey by Central Bank of Kenya, MSMEs constitute 98% of businesses. In turn, they create 30% of jobs annually and contributes to 3% of the GDP. Rapid changes in technology is listed as one of the hindrances to growth of SMEs by a Deloitte Kenya Economic Outlook 2016 report. Small businesses have small margins and with a solution that can help them minimize costs and improve their operations can make all the difference.

We believe that digitizing the way MSMEs manage their employee time and attendance can be another opportunity to expand our capabilities and to be a larger player in the MSME space. With our early wage access product, myNGOVO Advance, we can offer employees part of their earnings throughout the month. Thus, they use it for daily needs instead of paying exorbitant interest charges. TruAttendance fits perfectly into this mold giving us the opportunity to improve the productivity of employees while catering for their financial wellness.

This product has been developed to be as simple as possible even for those who are not tech-savvy but can also serve the needs for larger organizations with an integrated enterprise-grade access management solution eliminating redundancies and increasing productivity.

Thanks for your patronage. We would love to serve you in your productivity journey. Create an account and download the app. You can reach out to us and we promise to respond in 24 hours through

digital mobile lenders
Are Digital Mobile Lenders the New Loan Sharks?

There are 14 million people blacklisted by Credit Reference Bureaus (CRBs) in Kenya according to the latest figures. This indicates a 45% jump between August 2020 and January 2021. This can been largely attributed to the proliferation of digital mobile lenders. A 2019 FinAccess report shows mobile bank loans and digital app loans with the second and the fourth highest default rate by loan type respectively. This has led to many people accusing digital app lenders of loan shark tendencies. They also deliberately lending to people who can’t afford to pay back due to the high interest rates. This is by use of alternative data such as MPESA transaction history. Also access to a borrower’s contacts can give them leverage in nudging borrowers to repay loans in default.

One of the reasons that reinforces the claim that digital mobile lenders operate a debt-trap business model is that they loan a lot of money to the unbanked and underbanked.  This can be shown in the significant growth in the number of borrowers who can access quick unsecured loans. This can be through their mobile phones easily with no previous credit repayment history. On the flipside, according to Internet World Stats (IWS), Kenya recorded the highest internet infiltration rate in Africa in the year 2020. According to IWS, 87.2% of the country’s population have been connected to the internet. This can present a huge market to provide the unbanked and underbanked with financial services through the internet.This can range from providing loans and financial literacy through the new pervasive medium, a demographic that had largely been neglected.

Digital lenders can be seen to be operating with opaque lending practices that does not foster transparency before lending to borrowers. This can be reflected in the punitive late payment fees that borrowers are saddled with. These fees end up crippling the financial health of a borrower. This can leave them in a negative-pay cycle, borrowing to repay loans due. Also, when pressed on this issue, they point out to their terms of service that every borrower must agree to before they access the financial services offered. From their assertion, it is the prerogative of the prospective borrower to assess the terms of the service before agreeing and then decrying when they are enforced.

Digital lenders posit that they don’t just loan to borrowers with debt distress. They invest in technology that utilizes alternative data. The data can be provided by the prospective borrower to paint a borrower’s ability to pay a loan. The limit can be determined by the credit scoring engines that heavily rely on data science and machine learning. This can enable digital mobile lenders to provide a service that was previously not available to the unbanked and underbanked.

Last year the Central Bank of Kenya (CBK) revoked the approval of digital lenders to share their data with CRBs. Also it exempted those borrowing less than Ksh 1,000. This can be seen as trying to tame the runaway defaulting. In addition, members of parliament cleared a Bill that seeks to regulate mobile loan rates. With that, it paves the way for a regulatory framework for digital mobile lenders. Moreover, a wider adoption of financial services by the population to take advantage of the fourth industrial revolution.

Salary Advance In Kenya Instantly with myNGOVO Advance

Salary advance is a short-term financing facility that is advanced to salaried employees in Kenya through the myNGOVO mobile app with no interest charges. Employees can access up to 50% of their net salary through the app any time of the month instantly deposited into their mobile money account for convenience. This allows employers to lift the morale of their workers improving productivity and reducing anxiety over financial stress and employees are able to access their salary advance whenever they need it with no punitive penalties and charges.

How It Works

The turnaround process from initial contact by employer to first salary advance payment request is less than twenty four hours with the whole process automated. Employers sign up for free and myNGOVO is launched inside the company. Employees are then able to download the app and register. After logging in, an employee is able to access salary advance payments any time of the day even during holidays. The employee account is reconciled during their next payday with only a 3.6% origination fee levied on the salary advance payment requested and no interest charges.

This can give employees access to salary advance in Kenya with no need to wait for banks to deposit to your account. Remove the guesswork out of your salary advance application and see the money in your mobile wallet sooner.

Get Started

Empower your employees to avoid costly loans that leave them with a negative pay cycle and a recurring debt problem by giving them access to part of their salary whenever they need it. Easily align employee cash needs with their income with no cash commitment from the employer. Employees can also refer their employers and we will do the heavy-lifting for you. Contact us today at 0705043366 or send an email to and start your financial wellness journey.

How CRBs In Kenya Make Money |myNGOVO Advance

Summary of How CRBs in Kenya make money

TransUnion, Metropol and CreditInfo also know as the main CRBs in Kenya collect and store credit information on individual users from registered financial institutions and make the same information available to other institutions that need credit information on a user for a specified purpose.

So how do these credit bureaus make money?

TransUnion, Metropol and CreditInfo are for-profit organizations hence the need to generate revenue to offset their cost base. With the recent proliferation of mobile loans in the Kenyan financial sector, the role of credit bureaus has increasingly been put on the spot with the risk of over-indebtedness leading to many youths being listed with a negative CRB status owing to defaulting on the micro-loans. If you have accessed a loan from any registered financial institutions with explicit access to share their borrower’s information to the credit bureaus, your information is stored in the databases of either one or more of the three CRBs.

The main channel by which CRBs make money is by creating and selling credit reports of individual borrowers whose information has been shared by financial institutions. This may include accredited SACCOs, banks and online lenders, although they are largely restricted from accessing credit reports stemming from a directive by the Central Bank of Kenya from 2020.

In addition, CRBs may also gather publicly available data to enrich their databases with more data points that lead to a more holistic credit report that directly affects your ability to get liquidity and loans from financial institutions.

The CRBs in Kenya can then sell the consumer credit reports to a lender trying to qualify a loan applicant or a credit card company determining your credit limit.

The CRBs also sell credit information to companies that want to use the data for marketing purposes. For example, a consumer with a low or negative credit status may be targeted by firms offering loans with no CRB check.

In a nutshell, CRBs in Kenya do more than blacklist or whitelist potential borrowers. There are other services such as data analytics and their own white-label financial products that CRBs make money but their core business remains collecting, storing and disseminating credit consumer reports.

CRB status and how to check it in Kenya| myNGOVO

A Credit Reference Bureau is a firm that collects credit information from financial institutions on individual consumers and prospective borrower. As such, this credit information is used for various use cases including determining your credit worthiness and how much a lender can advance financing to you as a borrower depending on your previous loan repayment behaviour. A positive CRB status implies a healthy repayment behaviour while a negative status means a defaulted credit which affects your ability to get a loan reprieve.

There are several CRBs licensed by the Central Bank of Kenya in provision of a centralized source of credit information shared by commercial banks and other financial institutions. They include TransUnion, Metropol and CreditInfo.

With the proliferation of mobile phone use, this has also simplified the way one can access their CRB status without increased friction.

To check your CRB status on Transunion:

  1. You first send your name to 21272 and register or download the TransUnion Nipashe app to avoid the SMS charges.
  2. Enter your ID number and choose your credit status.
  3. You will receive your CRB status.

To check your CRB status on Metropol:

  1. Download the Metropol Crystobol app or dial *433# after paying the registration fee using your ID number to paybill number 220388 and your ID number as the account number.
  2. Use your unique pin to access and view your status.

To check your CRB status on CreditInfo you will need to fill an online credit request form on their website.

With a positive confirmed status you can apply for a loan facility while those with a negative status will have to clear their outstanding loans to improve their creditworthiness. Are you looking for instant loan with no CRB check? Try myNGOVO Advance and access salary advance facility today with no interest charges and let your money work for you.

Steps To Better Manage Your MSME and Grow

For many micro,small and medium-sized enterprises (MSMEs) they do not have the luxury of relying on managers but rather the sheer will and ambition of the business owner and proprietor.As the world has become a global village,with business owners forced to acquire knowledge in a variety of fields to remain competitive,solid management skills are vital for the present and future viability of the MSME as a going concern.

With a steep learning curve,MSMEs are faced with the challenge of growing their leadership and management skills beyond that of the business owner.This dictates the difference between success and failure,be it a barber shop with five employees or a restaurant with one hundred employees.

Over 14 million Kenyans,representing about a quarter of the population,are employed by MSMEs in various sectors of the Kenyan economy.This suggests a growing need for skills in team management and effective execution for continued success and increased job creation.

Globalization and an open economy presents a challenge for MSMEs top juggle implementing growth plans beyond their scope and still remain nimble while requiring their employees to achieve more with less resources.Hence they need to come up with structures and processes that are effective even for the smallest business while making maximum utility of time by employees to ensure increased productivity.These structures can lead to:

Proactive resource planning and allocation.

Improved efficiency in business processes.

Increased profitability.

Better customer relationship.

Effective management is a proven recipe for increased workforce satisfaction and less distractions through repeatable processes and guidelines that can be adopted throughout the business as you grow.

Here are the steps you can take towards managing your enterprise more effectively

  1. Plan

Developing a plan of attack is critical in the success if any venture.A well-thought-out plan will give your team a scope of the work before them and harmonize the goals of your employees with the anchor goal for your business.

Breaking down the plan into short-term deliverables while keeping a timeline for the tasks and responsibilities is a way of ensuring the plan is consumed by everyone in the enterprise.This will give you more visibility into the different facets of the plan hence better resource allocation and accountability from your team.

2. Effective Communication

Effective communication of the underlying goal to the team,be it on a monthly,quarterly or annual basis ensures the team is hyped and motivated working towards a shared vision.Making it easy for employees to update their supervisors on any anomaly or opportunity that arises can often lead to an enterprise being able to defend their position in the market or even start a different service provision occasioned by seamless and effective communication.

3. Technology

Business processes have become proliferated with technology tools that have become useful in conducting repetitive tasks in an enterprise. Combining technology that harnesses simplicity and efficiency will unlock the potential of your firm to do more with less.

In a nutshell

While it can be challenging for MSMEs during macro economic disasters,their advantage comes with being nimble and can weather any disaster in the economy focusing on better management of scarce resources to survive long enough for the economy to expand and take advantage of the addressable market opened up. Business owners have to figure out the best concoction for the success of their enterprises.