Inventory is stated at the lower of cost or net realisable value, with the exception of biological assets, whose value is prescribed by the Commissioner.
See Capital gains tax (CGT) in the Other taxes section for more information.
Kenya-source dividends are taxable income in Kenya unless the recipient is a Kenya resident company holding 12.5% or more of voting power of the company paying the dividend.
However, for companies holding less than 12.5% of the votes, and other resident taxpayers, the 5% WHT is the final tax. Dividends paid to non-residents and any overseas holding company attract 15% WHT.
Interest income is generally included in the determination of taxable income unless expressly exempted for income tax.
Royalty income is subject to CIT at 30%. Where royalties paid to a Kenyan taxpayer attract Kenyan WHT, the WHT credit can be used to offset against the tax liability arising from the royalty income.
In Kenya, companies are taxed on income accrued or derived from Kenya.