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KRA Income Tax Rates in Kenya for 2023-2024

Q: What is the financial year for 2024/2025 in Kenya?

A financial year (also known as a fiscal year) in Kenya begins on 1 July of the current calendar year and ends on 30 June of the following year.

iTax is a system that has been developed by the official tax body, Kenya Revenue Authority, to allow a taxpayer to register for a PIN, file their tax return, apply for a tax compliance certificate, generate a payment slip, check their ledger account and more.

The Income Tax Act No. CAP 470 (known as the Income Tax Act) applies to assessments for the year of income 1974 and subsequent years of income. The Act provides income tax tables for both individuals and businesses.

How do you calculate income tax? Familiarizing yourself with these tax brackets and tax rates is essential for effective tax planning and to stay compliant with Kenyan tax laws. Different tax brackets apply depending on whether you operate as a sole proprietor, corporation, trust or partnership.

Here you will learn more about:

headline tax rates
personal income tax rates for individuals
pension tax rates for individuals
corporate income tax rates
special corporate income tax rates
withholding tax rates for residents and non-residents
digital services tax rates
capital gains tax rates
value-added tax rates

Headline Tax Rates in Kenya

Headline Tax Rates	Tax Rate (%)
Headline Personal Income Tax (PIT) Rate	35
Headline Corporate Income Tax (CIT) Rate	Resident Corporation: 30
Headline Corporate Income Tax (CIT) Rate	Foreign Corporation: 30

Personal Income Tax (PIT) Rates for Individuals in Kenya 2023-2024

Income tax is a direct tax imposed on any income whether derived from business, employment, rent, dividends, interest, pensions and more. Individual income tax is charged for every year of income on all income of an individual. This applies whether the individual is a resident or non-resident and whether accrued in or derived from Kenya.

Personal Income Tax (PIT) Rates for Individuals
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 Rates for Individuals

Pension Tax Rates for Individuals
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

Personal Income Tax Due Dates

Personal Income Tax (PIT) Due Dates
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).

Corporate Income Tax Rates in Kenya 2023-2024

The corporate tax rates below are applicable.

Corporate Income Tax (CIT) Rates
Company Type	Tax Rate (%)
Resident Corporation	30
Foreign Corporation	30

Special Corporate Income Tax Rates for Companies in Kenya

There are special rates for certain resident and non-resident companies as tabulated below.

Special Corporate Income Tax (CIT) Rates for Companies
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

Corporate Income Tax Due Dates

Corporate Income Tax (CIT) Due Dates
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.

Withholding Tax Rates for Residents and Non-Residents in Kenya

Withholding Tax Rates on Types of Income
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

Digital Services Tax

Where income is derived or accrued through a digital marketplace, this is known as digital content monetization. A digital marketplace is a platform that enables direct interaction between buyers and sellers of goods and services through electronic means. Such income is taxed under the Digital Services Tax (DST) effective from 1 January 2021.

DST is currently applicable only to non-resident individuals who do not have a permanent establishment (PE) in Kenya and who are providing in-scope digital services to those within Kenya.

The rate of DST is 1.5% of the gross transaction value:

a) In the case of the provision of digital services, the payment received as consideration for the services; and
b) In the case of a digital marketplace, the commission or fee paid to the digital marketplace provider for the use of the platform.

Note: The gross transaction value is exclusive of value-added tax (VAT).

DST is due every month, on or before the 20th day of the following month that the digital service was offered.

Capital Gains Tax in Kenya

Capital Gains Tax (CGT)	Tax Rate (%)
Headline Corporate Capital Gains Tax	15
Headline Individual Capital Gains Tax	15

Value-Added Tax Rates in Kenya

Value-Added Tax (VAT)	Tax Rate (%)
Standard VAT	16
Zero Rated	0

Kenya also has 0% (Zero-rated) VAT which applies to specific supplies listed in the Second Schedule to the Value Added Tax Act 2013 CAP 476.

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FAQs about KRA Income Tax Tables

What is the tax percentage in Kenya?

Different tax rates apply depending on whether the taxpayer is an individual, business entity (corporation or partnership), or a not-for-profit organization. The headline rate refers to the highest tax rates applicable in a particular jurisdiction.

The headline Personal Income Tax (PIT) rate is 35%
The headline Corporate Income Tax (CIT) rate is 30% for both the resident corporation and the foreign corporation

What is the tax rate in Kenya in 2024-2025?

The main taxation changes for the financial year 2024-2025 are contained in the Finance Bill 2024:

a higher tax band will be introduced for individuals earning above KES1,000,000 per month at 35%
capital gains tax is projected to increase from 5% to 10% on the sale of property and marketable securities
digital services tax will increase from 1.5% to 2%
a new property tax on high-value properties valued at over KES50 million will be introduced at the rate of 1.5% annually

What is the financial year for 2024/2025 in Kenya?

View more global tax tables and tax brackets on our Tax Tables Hub

Tax Tables Hub