Turnover Tax can quietly eat into your profit.
Why?
Because TOT is based on turnover, not profit.
You can make KSh 1M in sales, spend KSh 900K running the business, and still have TOT based on the KSh 1M.
Your sales can grow while your margins shrink.
That's why don't just ask:
“How much are we selling?”
Ask:
“How much are we actually keeping?”
Revenue growth is good.
Profitable growth is better.
If you're under TOT, keep an eye on your margins—not just your turnover.
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