Capital Allowances Rates 2022

Buildings New rate
Hotel Building 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Building used for manufacture 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Hospital buildings 50% in the first year of use, 25% per year  on the residue on Straight Line (equal Instalments) basis
Petroleum or gas storage facilities 50% in the first year of use, 25%per year on the residue on Straight Line (equal Instalments) basis
Educational buildings including student hostels 10% per year on Straight Line (equal Instalments) basis
Commercial Buildings 10% per year on Straight Line (equal Instalments) basis
Machinery New rate
Machinery used for manufacture 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Hospital Equipment 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Ships and aircrafts 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Motor Vehicles and Heavy earth Moving Equipment 25% per year, on Straight Line (equal Instalments)
Computer and peripheral computer hardware and software, calculators, copiers and duplicating machines 25% per year, on Straight Line (equal Instalments)
Furniture and Fittings 10% per year on Straight Line (equal Instalments) basis
Telecommunication equipment 10% per year on Straight Line (equal Instalments) basis
Filming Equipment by a local film producer licensed by the cabinet secretary responsible for filming 25% per year on Straight Line (equal Instalments) basis
Machinery used to undertake operations under a prospecting right 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Machinery used to undertake exploration operations under a mining right 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Other machinery 10% per year on Straight Line (equal Instalments) basis
Purchase or acquisition of an indefeasible right to use fibre optic cable by a telecommunication operator 10% per year on Straight Line (equal Instalments) basis
Farm works 50% in the first year of use, 25% per year on the residue on Straight Line (equal Instalments) basis
Notes:

1.      Capital allowance was calculated on Reducing balance basis in the year 2020

2.      Investment deduction rate shall be 100% where

  • Investment is made in special economic zones or
  • Investment of  at least Sh. 250 Million is made outside Nairobi and Mombasa County in that year of income or
  • The cumulative investment value in the preceding three years outside Nairobi City County and Mombasa County is at least two billion shillings – 150% rate applies if the investment was made on or before 25th April 2020

Refer to Finance act 2021
error: Content is protected !!