Kenya

Overview

Last reviewed - 26 September 2022

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 Kenya Kwanza Government was elected in August 2022, replacing the previous Jubilee Government. Kenya Kwanza Government’s Economic Recovery Agenda is anchored on a bottom-up approach. The agenda is geared towards economic turnaround and inclusive growth. Special focus will be placed on increased employment, more equitable distribution of income, social security while also expanding the tax revenue base, and increased foreign exchange earnings.

The new Government intends to implement policies and structural reforms and promote investment in five core thematic areas that are expected to have the highest impact at the bottom of the income earnings. These are: Agriculture Productivity; Micro, Small and Medium Enterprise (MSME) Economy; Housing and Settlement; Healthcare; and Digital Superhighway and Creative Economy.

As outlined in the Government Budget Policy Statement 2023, the Kenyan economy continued to expand in 2022, albeit at a slower pace than the 7.5 percent recorded in 2021. The economy is projected to rebound to 6.1 percent in 2023

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 African Continental Free Trade Area (AfCFTA), 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, legal business solutions, and immigration services.

Quick rates and dates

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

Resident corp.: 30;

Foreign corp.: 37.5

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

Within six months following a company’s financial year end.

CIT final payment due date

Within four months of the company’s financial year end.

CIT estimated payment due dates

Instalment tax payments of 25% each must be made during the year on the 20th day of the 4th, 6th, 9th, and 12th month of the company’s financial year.

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

30

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 (%)

16 (8% for petroleum products)

Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident: 5 / 10 to 25 / 5;

Non-resident: 15 / 15 to 25 / 20

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

15

Headline individual capital gains tax rate (%)

15

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

NP

Inheritance and gift tax rates
Headline inheritance tax rate (%)

NP

Headline 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.