Withholding Tax Calculator Kenya 2026
Use this free withholding tax calculator for Kenya to work out the tax to deduct from a payment to a resident or a non-resident, including the lower rates under Kenya's double taxation agreements.
Rates updated: 12 October 2026 · Finance Act, 2026 · 16 double taxation agreements
Estimated withholding tax to deduct
KES 0.00
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Withholding tax errors are costly because the payer carries the liability. FNJ & Associates reviews contracts and payment runs before the tax is deducted, and deals with KRA when a deduction is questioned.
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We confirm whether a treaty applies, what the payee must provide, how a net-of-tax clause changes the cost, and whether the payee has a permanent establishment in Kenya.
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We test a sample of your payments against the rates, the KES 24,000 threshold and the five-day remittance rule, then fix gaps before a KRA audit finds them.
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Withholding tax rates in Kenya for residents and non-residents
These are the standard rates the calculator uses. Tax is deducted from the gross amount, before VAT.
| Payment | Resident | Non-resident |
|---|---|---|
| Investment income | ||
| Dividends | 5% (exempt at 12.5%+ voting power) | 15% |
| Interest: bank deposits, loans and other | 15% | 15% |
| Interest: housing bonds | 10% | – |
| Interest: bearer instruments | 25% | 25% |
| Interest: bearer bonds of 10 years or more | 10% | – |
| Interest: bearer bonds issued outside Kenya (2 years or more) | – | 7.5% |
| Royalties | 5% | 20% |
| Natural resource income | 5% | 20% |
| Fees for services | ||
| Management or professional fees | 5% | 20% |
| Consultancy or agency fees | 5% | 20% (15% for EAC citizens) |
| Training fees (including incidental costs) | 5% | 20% |
| Contractual fees (building, civil or engineering works) | 3% | 20% |
| Sales promotion, marketing and advertising services | 5% | 20% |
| Appearance fees: entertainers and sportspersons | – | 20% |
| Telecommunication services and transmission of messages | – | 5% |
| Digital economy | ||
| Digital content monetisation | 5% | 20% |
| Payments made through a digital marketplace or platform | 5% | 20% |
| Rent and leasing | ||
| Rent: land and buildings | 10% | 30% |
| Lease or hire of movable property | – | 15% |
| Residential rent collected by a KRA-appointed agent | 7.5% | – |
| Insurance and pensions | ||
| Insurance commission: brokers | 5% | – |
| Insurance commission: other agents | 10% | – |
| Insurance commission | – | 20% |
| Insurance or reinsurance premiums | – | 5% |
| Pension or retirement annuity | – | 5% |
| Other payments | ||
| Winnings: betting, gaming, lotteries and prize competitions | 20% | 20% |
| Supply of goods to a public entity | 0.5% | 5% |
| Sale of scrap metal | 1.5% | 1.5% |
| Gains from financial derivatives | – | 15% |
| Sale of property or shares in oil, mining or mineral prospecting companies | 10% | 20% |
- Resident management, professional, consultancy, training and contractual fees are subject to withholding once the payee's fees reach KES 24,000 in a month.
- A dash means no withholding tax applies to that payee under the standard rates, or the payment is taxed in another way.
Withholding tax rates under Kenya's double taxation agreements
A treaty caps the rate Kenya may charge. The table shows the rate that applies after comparing the treaty cap with Kenya's own non-resident rate, because the lower of the two is used.
| Country | Dividends | Interest | Royalties | Management or professional fees |
|---|---|---|---|---|
| Canada | 15% | 15% | 15% | 15% |
| Denmark | 15%1 | 15%1 | 20% | 20% |
| France | 10% | 12% | 10% | No article2 |
| Germany | 15% | 15% | 15% | 15% |
| India | 10% | 10% | 10% | 10% |
| Iran | 5% | 10% | 10% | No article2 |
| Norway | 15% | 15%1 | 20% | 20% |
| Qatar | 5% or 10%4 | 10% | 10% | No article2 |
| Seychelles | 5% | 10% | 10% | 10% |
| Singapore5 | 8% | 10% | 10% | 10% |
| South Africa | 10% | 10% | 10% | No article2 |
| South Korea | 8% or 10%4 | 12% | 10% | No article2 |
| Sweden | 15% | 15% | 20% | 20% |
| United Arab Emirates | 5% | 10% | 10% | No article2 |
| United Kingdom | 15% | 15% | 15% | 12.5% |
| Zambia | 0%3 | 0%3 | 0%3 | 20% |
- The treaty cap is higher than Kenya's non-resident rate, so Kenya's rate applies.
- The treaty has no article on management or professional fees. KRA's position is that 20% applies. The High Court has held that such fees are business profits, taxable in Kenya only where the payee has a permanent establishment here. Take advice before relying on either view.
- Dividends, interest and royalties are not taxed in Kenya where the income is subject to tax in Zambia.
- The lower rate depends on the recipient's shareholding in the company paying the dividend.
- The Singapore treaty entered into force on 20 April 2026 and is expected to apply to payments from 1 January 2027. Until then Kenya's non-resident rates apply.
Withholding tax in Kenya: frequently asked questions
How do I calculate withholding tax in Kenya?
Multiply the amount of the payment, before VAT, by the withholding tax rate for that type of payment and for the payee's tax residence. For example, a resident consultant invoices KES 100,000 plus KES 16,000 VAT. Withholding tax is 5% of KES 100,000, which is KES 5,000. You pay the consultant KES 111,000 and remit KES 5,000 to KRA.
What is the withholding tax rate on professional and consultancy fees in Kenya?
5% for residents, once the payee's fees reach KES 24,000 in a month, and 20% for non-residents. Consultancy fees paid to citizens of East African Community states are taxed at 15%. Some treaties cap the rate, for example 12.5% under the United Kingdom treaty and 10% under the India and Seychelles treaties.
What is the withholding tax rate on dividends in Kenya?
5% for residents and 15% for non-residents. Dividends paid to a resident company that controls 12.5% or more of the voting power are exempt. The Finance Act, 2026 removed the 5% rate for citizens of East African Community states. Treaties cap the rate at between 5% and 10% for several countries, including India, South Africa, France and the United Arab Emirates.
Which countries have a double taxation agreement with Kenya?
Kenya has treaties in force with Canada, Denmark, France, Germany, India, Iran, Norway, Qatar, Seychelles, South Africa, South Korea, Sweden, the United Arab Emirates, the United Kingdom and Zambia. A treaty with Singapore entered into force on 20 April 2026 and is expected to apply to payments from 1 January 2027.
How does a tax treaty reduce withholding tax in Kenya?
A treaty sets the highest rate Kenya may charge on dividends, interest, royalties and, in some treaties, management or professional fees. Where the treaty rate is lower than Kenya's own non-resident rate, the treaty rate applies. Where it is higher, Kenya's rate applies. The payee needs a valid tax residence certificate and must be the beneficial owner of the income.
When must withholding tax be paid to KRA?
Within five working days after the tax is deducted. Payment is made through iTax, and iTax then issues a withholding certificate to the payee. A payer who fails to deduct or remit becomes liable for the tax, with a 5% late payment penalty and interest of 1% a month.
What if the contract says the fee is net of tax?
The payer bears the withholding tax, so the fee is grossed up. Divide the net amount by one minus the rate. At 20%, a net fee of USD 10,000 becomes a gross fee of USD 12,500, and the withholding tax is USD 2,500. Choose the net option in the calculator to do this.
Is withholding VAT the same as withholding tax?
No. Withholding tax is income tax deducted from the payee's income. Withholding VAT is 2% of the taxable value, deducted by agents appointed by KRA from payments to suppliers. This calculator covers withholding income tax only.
Related guides and tools
Disclaimer. This calculator gives a general estimate based on the Income Tax Act (Cap. 470), the Finance Act, 2026 and the double taxation agreements in force, as we understand them on 12 October 2026. It is not tax advice. The correct rate depends on the contract, the nature of the payment, the payee's tax residence and status, exemptions, and whether treaty conditions are met. Rates and rules change, and KRA or the courts may take a different view. FNJ & Associates accepts no liability for decisions made using this tool. Confirm the position with a tax adviser before you deduct or remit tax.