Podcast Podcast: from Centonomy student to SME ecosystem builder
On Making Cents Conversations, Allen Kimani talks about his journey from Centonomy student in 2013 to building an ecosystem for African enterprises and SMEs.
Quick answer
Open a business bank account and a separate M-Pesa till or paybill, run every sale and business cost through them, and pay yourself a fixed monthly salary into your personal account. Then record income and costs weekly so you can see real profit.
Key takeaways
- 1One business account, one till, no exceptions.
- 2Pay yourself a fixed salary, on a fixed date.
- 3Record income and costs weekly.
- 4Keep receipts for KRA.
Why it matters
When business and household money share one M-Pesa line, every shopping trip looks like a business cost and every sale looks like profit. You can't price well, borrow well or pay tax correctly without knowing your real numbers.
Five steps to separate them
- Open a business account and a till or paybill. All sales go in here.
- Pay business costs only from it. Stock, rent, wages, transport for deliveries.
- Pay yourself a salary. A fixed amount, on a fixed date, into your personal account.
- Record weekly. Twenty minutes every Friday: money in, money out, what's owed.
- Keep the receipts. eTIMS invoices and receipts keep you KRA-compliant.
How much should you pay yourself?
Start with what the business can pay every month, even in a slow month. Raise it when three months of records show a steady profit.
Questions people ask
Should a small business have a separate bank account?
Yes. A separate account and till make your profit visible, make tax filing easier and are usually required by lenders.
Centonomy team
Plain-language money guides from Centonomy, to help you move from knowing better to doing better.
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