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%.
In 2019, Kenya’s economic growth averaged 5.7%, placing it as one of the fastest growing economies in Sub-Saharan Africa. 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.
However, Kenya’s economy is being hit hard through supply and demand shocks on external and domestic fronts, interrupting its recent broad-based growth path. Apart from the COVID-19 (coronavirus) pandemic, the locust attack which started early 2020, has affected many parts of Kenya especially the North East. It has had a negative impact on the food security and growth of the agriculture sector in the country. Real gross domestic product (GDP) growth is projected to decelerate from an annual average of 5.7% (2015-2019) to 1.5% in 2020.
However, if it takes longer than expected to bring the COVID-19 pandemic under control, GDP could contract by 1.0% in 2020, and see a delay in the projected recovery to 5.2% growth in 2021. The downside risks include a protracted global recession undermining Kenya’s export, tourism and remittance inflows, further tightening of COVID-19 health response measures that disrupt the domestic economic activity, fiscal slippages and weather-related shocks.
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.
|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 of the 4th, 6th, 9th and 12th month of the company’s financial year.
|Personal income tax (PIT) rates|
|Headline PIT rate (%)||
|Personal income tax (PIT) due dates|
|PIT return due date||
|PIT final payment due date||
|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 (%)||
|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 (%)||
|Individual capital gains tax rate (%)||
|Net wealth/worth tax rates|
|Headline net wealth/worth tax rate (%)||
|Inheritance and gift tax rates|
|Inheritance tax rate (%)||
|Gift tax rate (%)||