Kenya

Overview

Last reviewed - 03 August 2020

Kenya is located along the Indian Ocean on the East coast of Africa and is bordered by Tanzania to the south, Uganda to the west, South Sudan to the northwest, Ethiopia to the north, and Somalia to the northeast. The capital city of Kenya is Nairobi, and the official languages are Swahili and English. The official currency is the Kenya shilling (KES).

Kenya is the economic, financial, and transport hub of East Africa. In the last decade, the real gross domestic product (GDP) growth has averaged over 5%. The economy is estimated to have expanded by 6.2% in 2019 compared to 5.8% in 2018 and 4.9% in 2017. The growth is supported by strong agricultural and manufacturing activities underpinned by favourable weather conditions, a strong service sector, a stable macroeconomic environment, ongoing public infrastructural investments, and sustained business confidence.

In addition, measures being undertaken by the government under 'The Big Four' agenda to boost the manufacturing sector, enhance food security and nutrition, build affordable housing, and achieve universal health coverage are expected to enhance growth, create jobs, and promote inclusive growth.

Kenya promulgated a new Constitution on 27 August 2010 and carried out its first elections under this new Constitution on 4 March 2013; following which, a new system of government, comprising a national government and devolved system of 47 counties, came into effect. Devolution remains the biggest gain from the August 2010 Constitution, which ushered in a new political and economic governance system.

Kenya participates in several regional initiatives and is a member of the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), Intergovernmental Authority on Development (IGAD), and the Commonwealth, amongst others.

PwC in Kenya provides integrated audit, tax, and advisory services across all industries. Our Tax Services division provides our clients with a broad range of tax services, including transfer pricing, value-added tax (VAT), customs and excise, corporate tax planning and compliance, personal tax advisory and compliance, reward and remuneration, dispute resolution, regulatory compliance and advisory, and immigration services.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

Resident corp.: 25;

Foreign corp.: 37.5

Corporate income tax (CIT) due dates
CIT return due date

Within six months following a company’s year end.

CIT final payment due date

Within four months of the financial year end.

CIT estimated payment due dates

Quarterly payments of tax must be paid during the year.

Personal income tax (PIT) rates
Headline PIT rate (%)

25

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).

Value-added tax (VAT) rates
Standard VAT rate (%)

14

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 5 / 10 to 25 / 5;

Non-resident: 15 / 15 to 25 / 20

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

5

Individual capital gains tax rate (%)

5

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NP

Inheritance and gift tax rates
Inheritance tax rate (%)

NP

Gift tax rate (%)

NP

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.