What's

Withholding Tax Rates

Income Resident Payee Notes Non-resident payee
Management, professional and training fees 5% (1) 20%*
Management Fees paid by SEZ to non-resident 5%
Royalties ( Natural resource) 5% 20%*
Royalties paid by SEZ to non-residents 5%
Leasing equipment  other than Immovable Nil 15%
Dividend<12.5% voting power 5%* (3) 5%/10%*
               >12.5% voting power Exempt 10%
Interest from financial institutions – Bank 15% (4) 15%*
Interest on Govt  bearer bonds with maturity of ≥ 2 years 15% 15%
Interest on Govt  bearer bonds with maturity of ≥10 years 10% 15%
Interest on  other bearer certificates 25% /20%* (4&5) 25%*
Housing bond interest 10%* (4&5) 15%*
Rents-immovable property 10%%*  (6) 30%*
Pension and taxable withdrawals from pension/provident funds 10%-25%* (7) 5%*
Insurance commissions 10% (8) 20%*
Insurance and reinsurance premiums N/A (9) 5%
Contractual fees 3% 20%
Consultancy fees- Citizens of EAC member countries 5% (10) 20%*
 Surplus pension fund withdrawals 30% 30%
Income Resident Payee Notes Non-resident payee
Telecommunication services/message transmission -VSAT 5%
Lottery/ betting winnings (w.e.f 1 Jan 2014) 20% 20%
Payments to sportsmen and entertainers 5% 20%
Supporting, assisting or arranging an appearance or performance N/A 20%

Sales promotion, marketing, advertising services, and transportation of goods (excluding air and shipping transport services)

 

N/A 20%
Gains from business of non-resident aircraft or ship-owner 2.5%
Sale of property or shares in oil, mining or mineral prospecting companies 10% 20%
Dividends- oil and gas sector 10%
Interest- Oil and gas sector 15%
Management and professional fees- Oil and gas sector 12.5%
Payments to subcontractors-oil and gas 5.625%

* means that the withholding tax is final, always the case for non residents

  • Training fees includes all incidental costs.
  • 5% applicable to East African citizens from 15 June 2007.
  • This applies only to individuals. The resident rate is as shown but is not a final tax for corporations. The rate for resident individuals from other bearer instruments is 20% final tax.
  • Limited to income of sh. 300,000 p.a.
  • -only withholding tax agents appointed by the Commissioner to withhold tax on rental income which does not exceed KES 15,000,000 and is more than KES 288,000 per annum
  • This rates apply only on the graduated PAYE tax rates (for early withdrawal) or in bands of sh. 400,000 (for withdrawals after a 15 year period or at 50 years of age)
  • 5% is paid to a resident broker.
  • Insurance/reinsurance premium paid in respect of aircraft is exempt
  • If fees are in excess of sh. 24,000 per month when paid to a resident person. Rate applicable on payment in respect of consultancy fees to citizens of the East Africa Community Partner states shall be 15%.

Note: Lower rate may apply there is a tax treaty in force. The countries with which Kenya has  signed double tax treaties with are UK, German, Canada, Denmark, Norway, Sweden, Zambia, and India.