Tax Services in Kenya

The personal income  tax/PAYE return due date is 30 June.

The personal income tax final  payment due date is 3oth April.

Individual Instalment Tax Summary

The headline corporate income tax for both resident and foreign corporations is 30%.

CIT return due date is within six months following a company’s financial year end.

CIT final payment due date is 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.

The standard value added (VAT) tax in Kenya is 16%.

The headline  corporate/individual capital gains tax rate is 15%.

Non-resident suppliers supplying electronically supplied services to Kenyans have an obligation to register for VAT and pay VAT at a rate of 16%.

The import duty rates in Kenya are governed by the East African Community (EAC) Customs Management Act and the EAC Common External Tariff (CET) 2022, with amendments introduced by EAC Gazette Notice No. 19 of 2025. The general tariff structure features four bands: 0%, 10%, 25%, and a maximum of 35%. Rates vary by product, with recent changes aimed at protecting local industries, enhancing affordability, and supporting manufacturing.

The table below summarizes key rates, amendments, remissions, exemptions, and temporary stays based on the amendments effective from July 1, 2025.

Comments:

• Classification Amendments: Updates to product descriptions (e.g., HS Code 9612 based on reel width) improve accuracy but do not alter rates directly.
• Policy Focus: Amendments emphasize local industry protection while providing relief for industrial inputs and essential goods.
• Application: Rates apply upon importation; remissions require meeting EAC scheme criteria. For precise rates on specific goods, consult the full EAC CET or Kenya Revenue Authority (KRA) guidelines, as variations may occur based on origin and HS codes.

The NSSF Act 2013 introduced enhanced NSSF contributions at the rate of 12% of an employee's pensionable earnings. This is made up of equal portions of 6% from the employee and 6% from the employer. Pensionable earnings have been defined under the Act as the lower of an employee’s monthly wages and the upper earnings limit (UEL)

Effective February 2025, the contributions are as follows;

• Tier I contributions: NSSF contributions relating to the earnings up to KES 8,000 (which has been defined as the LEL) are a maximum of KES 960, comprising equal portions of employee and employer contributions, and are be credited by the NSSF to an account referred to as a Tier I account.
• Tier II contributions: NSSF contributions relating to the earnings above KES 8,000 and not exceeding KES 72,000 are a maximum of KES 7,680, comprising equal portions of employee and employer contributions. These are credited by the NSSF to an account referred to as a Tier II account.
• The Act provides that an employer may opt to pay the Tier II contributions into an approved contracted-out scheme.

Households with income from salaried employment are required to contribute 2.75% of their gross salary or wage to the SHIF.

Employers are required to deduct and remit the employees’ contributions to the Social Health Authority (SHA) by the 9th day of the following month.

Employers are required to deduct and remit the AHL at the rate of:

• 1.5% of the employee’s gross monthly salary for the employees, and
• 1.5% of the employee’s gross monthly salary for the employer.

The AHL applies to both salaried and non-salaried individuals, requiring all persons who receive income or whose income is accrued in Kenya to remit 1.5% of their gross income as AHL.

Levy is to be remitted within 9 working days after the end of the month in which payments are due. 

 A penalty of 3% of the unpaid amount is imposed per month.

Tourism levy is payable to the Tourism Fund by entities dealing in tourism activities and services as highlighted in the Tourism Act at a rate of 2% of turnover.

Monthly levy of KES 50 per employee to the Directorate of Industrial Training. 

New employers who registered their business after 23 December 2019 and have less than 100 employees are exempted for a period of 12 months from the date of registration.

Failure to remit NITA on time attracts a  5% penalty per month on the unpaid amounts, pro-rated.

 9th day of the month following the payroll month.

A penalty of 5% per month on the outstanding amounts, pro-rated

RDL rate applicable to import of goods into Kenya is 2% (of the declared customs value).

Some items from the payment of RDL include woven fabrics, worn clothing and other goods of headings 5407 and 6309 imported as raw materials for textile products manufacturing, and inputs of raw materials and machinery used in the manufacture of mosquito repellents.

Rates vary based on the motor vehicles can be credited against any CIT payable for the particular year.

Notes:

i) The 5% withholding tax rate for non-residents on insurance or reinsurance premiums does not apply to premiums paid for aviation coverage (aircraft, cargo, and passengers).

ii) The resident withholding tax rate for pension/retirement annuity varies depending on the payments made.

iii) The 20% non-resident withholding tax rate for sales promotion, marketing, advertising services, and transportation of goods does not apply to transportation of goods for citizens of EAC member states.