Kenya

Corporate - Withholding taxes

Last reviewed - 26 February 2020

WHT is levied at varying rates (3% to 30%) on a range of payments to residents and non-residents. Resident WHT is either a final tax or creditable against CIT. Non-resident WHT is a final tax.

Payments Resident WHT rate (%) Non-resident WHT rate (%)
Dividend > 12.5% voting power Exempt 15
Dividend < 12.5% voting power 5 15
Interest:    
Bearer instruments 25 25
Government bearer bonds (maturity ≥ 2 years) 15 15
Bearer bonds (maturity ≥ 10 years) 10 N/A
Other 15 15
Qualifying interest:    
Housing bonds 10 N/A
Bearer instruments 20 N/A
Other 15 N/A
Royalty 5 20
Winnings from gaming and betting (1) 20 20
Management or professional fees 5 20
Consultancy fees - Citizen of EAC member states 5 15
Training (including incidental costs) 5 20
Rent/leasing:    
Immovable property N/A 30
Others (other than immovable) N/A 15
Pension/retirement annuity Varied (1) 5
Sales promotion, marketing, advertising services, and transportation of goods (excluding air and shipping transport services) 20(2)
Insurance or reinsurance premiums 5(3)
Contractual fees 3 20
Sale of property or shares in oil, mining, or mineral prospecting companies 10 20

Notes

  1. This will vary depending on the payments paid out.
  2. For East African Community Citizens the rate shall not apply to transportation of goods.
  3. Shall not apply to insurance or reinsurance premiums paid for aviation which covers aircrafts, cardo and passengers.

Oil and gas sector WHT rates

WHT rates applicable on payments to non-residents in the oil and gas sector are shown in the table below:

Payments Non-resident (oil and gas) WHT rate (%)
Dividends 10
Interest 15
Natural resource income 20
Management or professional fees 12.5

Double tax treaties (DTTs)

Lower rates may apply to non-residents where there is a DTT in force. The table below shows the maximum rates of tax that recipients in those countries with a DTT with Kenya can be charged on dividends, interest, royalties, and management and professional fees. The table only includes agreements that are currently in force.

Recipient WHT (%)
Dividends Interest Royalties 
Canada 15 15 15
Denmark 20 20 (1) 20
France 10 12 10 
Germany 15 15 (1) 15
India 10 10  10
Iran 5 10 10
Norway 15 20 (1) 20
Qatar 5 (5) 10 10
South Africa 10 10 10 
South Korea 10 (4) 12 10
Sweden 15 15 20
United Arab Emirates 5 10 10
United Kingdom 15 15 (1) 15
Zambia 0 (2) 0 (2) 0 (2)

Notes

  1. Interest paid by the government and the Central Bank of Kenya is tax-exempt.
  2. No Kenya tax is due if subject to tax in Zambia.
  3. 8% if the beneficiary holds at least 25% of the capital of the company paying the dividends.
  4. A rate of 10% is applicable where the beneficial owner is a company (other than a partnership) that  directly or indirectly holds less than 10% of the capital of the company paying the dividends.

Where the treaty rate is higher than the non-treaty rate, the lower rate applies.