With the Taxes coming up everyday, dont be surprised if one county govt starts taxing grandmothers on all the money they are given by their children. Didn't I hear even harambees will soon be taxed? In a harambee situation, has one "earned" that money in the strict sense?

, considering this is a straight forward case with very well defined income streams - what happens to the typical kenyan mwanabiashara;
one who owns some rental mikokotenis, an old truck that he probably services himself, a few mpesa joints, a mitumba stall, offers mujengo consultancy services, has an escort agency, mc's at local functions, is a ghost kanjo employee ...

According to the income tax Act,non cash benefits will be taxed if the income is more than shs 36000 p.a.
The question is at what circumstance was the gift issued?If it was not in the course of business or employment such as dowry,then it is not taxable.
The court also stopped KRA from taxing windfall gains.
For the above query the income taxable is business and farming income at the graduated scale rates.

why the assumption that the respondents fall under those jobs?

Taxation in Kenya depends on whether its a corporate or individual and also whether resident or non resident.
The two will be taxed separately.For both the rental and farming income you need to deduct the allowable deductions.The tax will be based on the net amounts.
For rental income the resident individuals will be taxed through the graduated scale rates.If resident companies,charged at a flat rate of 30% and if non resident,a withholding tax of 30% on gross amount will be applicable.
Net farming income will be added as other incomes and computed through the graduated scale rates.
If there was any tax paid at the source ie withholding tax and installment tax,then that tax will be deducted from the total tax payable.

Karibu sana @Kusadikika.

tax experts, consultants, what happens in the following scenario;

setting up a small biz, biz will deal in goods attracting VAT, now, the VAT Act sets the amount of revenue a biz requires so as to be registered for VAT at over 5m per year, this biz will not generate enough revenue to meet the 5m threshold by VAT Act at least for two years of operation, when i asked two different KRA guys who both deal with VAT, about the above, they both said i should register without regard to what the Act says.
should i go with what the law says or should i register for VAT without meeting the set threshold, is that even possible

Has to remember that ToT is N/A if set up as a limited company.

Start the biashara as a limited company with only the income tax obligation. since your annual turnover is not likely to be over 5m you dont need to register for VAT and since its a ltd co no need for TOT.
If you pay your self a salary note it will be liable to PAYE. Profits will be liable to tax at 30%

TOT scenario- your gross revenue will be liable to tax at 3% which is a final tax. As this is taxed on revenues, you may be paying to the tax man more than you probably ought to since expense are not allowable. This is however more simplified since you pay on gross and spend the rest vile unataka.

In both scenarios when your annual revenues hit 5m you will have to register for VAT.