KRA Income Tax Rates in Kenya for 2023-2024

Headline Personal Income Tax (PIT) Rate

35

Headline Corporate Income Tax (CIT) Rate

Resident Corporation: 30

Foreign Corporation: 30

Taxable Income (KES)

Tax Rate (%)

On the first 288,000

10

On the next 100,000

25

On the next 5,612,000

30

On the next 3,600,000

32.5

On all income over 9,600,000

35

Pension Tax Bands

Tax Rates (%)

Any amount in excess of tax free amounts:

On first 400,000

10

On next 400,000

15

On next 400,000

20

On next 400,000

25

On any amount in excess of KES 1,600,000

30

PIT return due date

30 June

PIT final payment due date

30 April

PIT estimated payment due dates

Four instalments of 25% each (by 20 April, 20 June, 20 September, and 20 December).

Company Type

Tax Rate (%)

Resident Corporation

30

Foreign Corporation

30

Company Type

Tax Rate (%)

Export processing zone (EPZ) enterprises:

First ten years

0

Next ten years

25

Thereafter

30

Registered unit trusts/Collective investment schemes

Exempt (subject to conditions)

Companies listed on securities exchange

25 (first five years)

Special economic zone (SEZ) enterprises, developers, and operators

10 (first ten years)

15 (succeeding ten years)

Local motor vehicle assembly companies

15 (first five years)

15 (succeeding five years, subject to conditions)

Company operating a carbon market exchange or emission trading system that is certified by the Nairobi International Financial Centre Authority

15 (first ten years from the year of commencement of its operations)

Company operating shipping businesses

15 (first ten years from the year of commencement of its operations)

Rates on gross income of non-residents derived from Kenya:

Transmission of messages

5

Ownership or operation of ships and aircraft

2.5

Demurrage charges

2.5

CIT return due date

Within six months following a company’s financial year-end.

CIT final payment due date

Within four months of the company’s financial year-end.

CIT estimated payment due dates

Instalment tax payments of 25% each must be made during the year on the 20th day of the 4th, 6th, 9th, and 12th month of the company’s financial year.

Type of Income

Resident Tax Rates (%)

Non-Resident Tax Rates (%)

Artists and entertainers

-

20

Management fees

5

20

Professional fees

5

20

Training fees (inclusive of incidental costs)

5

20

Winnings from betting, gaming, prize competition, gambling)

20

20

Royalties or natural resource income

5

20

Dividends (nil for resident companies with shareholding>12.5%), (5% resident qualifying dividend and citizens of EAC)

10

15

Equipment (movable) Leasing

N/A

5

Interest (Bank)

15

15

Interest (Housing Bond HBI)

10

15

Interest on at least two year government bearer bonds, (issued outside KE- 7.5%)

15

15

Other bearer bonds interest

25

25

Bearer bonds with maturity of ten years or more

10

Rent - buildings (immovable)

10

30

Rent - others (except aircraft)

N/A

15

Pensions/provident schemes (withdrawal)

10 - 30

5

Insurance Commissions - brokers

Insurance Commissions - Others

5

10

20

Consultancy and agency(from 1 July 2003), ( Consultancy fees to EAC citizen – 15%)

5

20

Contractual (from 1 July 2003)

3

20

Telecommunication services/Message transmission

-

5

Natural Resource Income (w.e.f. 1st January 2015)

5

20

Digital content monetization (w.e.f. 1st July 2023)

5

20

Sales promotion, marketing and advertising services

5

20

Withholding on rental income tax by tax agents (w.e.f. 1st January 2024)

7.5

N/A

Gains from financial derivatives

N/A

15

Headline Corporate Capital Gains Tax

15

Headline Individual Capital Gains Tax

15

Standard VAT

16

Zero Rated

0