What's
Withholding Tax Rates
| Income | Resident Payee | Notes | Non-resident payee |
|---|---|---|---|
| Management, professional and training fees | 5% | (1) | 20%* |
| Management Fees paid by SEZ to non-resident | 5% | ||
| Royalties ( Natural resource) | 5% | 20%* | |
| Royalties paid by SEZ to non-residents | 5% | ||
| Leasing equipment other than Immovable | Nil | 15% | |
| Dividend<12.5% voting power | 5%* | (3) | 5%/10%* |
| >12.5% voting power | Exempt | 10% | |
| Interest from financial institutions – Bank | 15% | (4) | 15%* |
| Interest on Govt bearer bonds with maturity of ≥ 2 years | 15% | 15% | |
| Interest on Govt bearer bonds with maturity of ≥10 years | 10% | 15% | |
| Interest on other bearer certificates | 25% /20%* | (4&5) | 25%* |
| Housing bond interest | 10%* | (4&5) | 15%* |
| Rents-immovable property | 10%%* | (6) | 30%* |
| Pension and taxable withdrawals from pension/provident funds | 10%-25%* | (7) | 5%* |
| Insurance commissions | 10% | (8) | 20%* |
| Insurance and reinsurance premiums | N/A | (9) | 5% |
| Contractual fees | 3% | 20% | |
| Consultancy fees- Citizens of EAC member countries | 5% | (10) | 20%* |
| Surplus pension fund withdrawals | 30% | 30% |
| Income | Resident Payee | Notes | Non-resident payee |
|---|---|---|---|
| Telecommunication services/message transmission -VSAT | 5% | ||
| Lottery/ betting winnings (w.e.f 1 Jan 2014) | 20% | 20% | |
| Payments to sportsmen and entertainers | 5% | 20% | |
| Supporting, assisting or arranging an appearance or performance | N/A | 20% | |
|
Sales promotion, marketing, advertising services, and transportation of goods (excluding air and shipping transport services)
|
N/A | 20% | |
| Gains from business of non-resident aircraft or ship-owner | 2.5% | ||
| Sale of property or shares in oil, mining or mineral prospecting companies | 10% | 20% | |
| Dividends- oil and gas sector | 10% | ||
| Interest- Oil and gas sector | 15% | ||
| Management and professional fees- Oil and gas sector | 12.5% | ||
| Payments to subcontractors-oil and gas | 5.625% |
* means that the withholding tax is final, always the case for non residents
- Training fees includes all incidental costs.
- 5% applicable to East African citizens from 15 June 2007.
- This applies only to individuals. The resident rate is as shown but is not a final tax for corporations. The rate for resident individuals from other bearer instruments is 20% final tax.
- Limited to income of sh. 300,000 p.a.
- -only withholding tax agents appointed by the Commissioner to withhold tax on rental income which does not exceed KES 15,000,000 and is more than KES 288,000 per annum
- This rates apply only on the graduated PAYE tax rates (for early withdrawal) or in bands of sh. 400,000 (for withdrawals after a 15 year period or at 50 years of age)
- 5% is paid to a resident broker.
- Insurance/reinsurance premium paid in respect of aircraft is exempt
- If fees are in excess of sh. 24,000 per month when paid to a resident person. Rate applicable on payment in respect of consultancy fees to citizens of the East Africa Community Partner states shall be 15%.
Note: Lower rate may apply there is a tax treaty in force. The countries with which Kenya has signed double tax treaties with are UK, German, Canada, Denmark, Norway, Sweden, Zambia, and India.