Kenya Tax Rates
Kenya, East Africa's largest economy, operates a progressive personal income tax system with rates up to 35%. The Kenya Revenue Authority (KRA) administers a modern tax system featuring a 30% corporate tax rate, 16% VAT, and digital services tax. Kenya is a regional hub for technology and finance, and has implemented a progressive digital economy taxation framework including taxation of the digital marketplace.
Top Income Tax Rate
35%
Corporate Tax Rate
30%
VAT / Sales Tax
16%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Kenya levies progressive personal income tax on residents' worldwide income. Monthly PAYE rates range from 10% on the first KES 24,000 (KES 288,000 annually) to 35% on income exceeding KES 800,000 monthly (KES 9.6 million annually). A personal relief of KES 2,400 per month (KES 28,800 per year) is available. Non-residents are taxed at 30% on Kenyan-sourced employment income. Insurance relief and mortgage interest relief are also available.
| Income Range | Tax Rate |
|---|---|
| KSh 0 – KSh 288K | 10% |
| KSh 288K – KSh 388K | 25% |
| KSh 388K – KSh 6.0M | 30% |
| KSh 6.0M – KSh 9.6M | 32.5% |
| KSh 9.6M+ | 35% |
Corporate Tax
Resident companies are taxed at 30% on worldwide income. Non-resident companies with a permanent establishment in Kenya pay 37.5%. Companies listed on the Nairobi Securities Exchange enjoy a reduced rate of 27.5% for three years after listing. Export Processing Zone (EPZ) enterprises receive a 10-year tax holiday followed by a 25% rate for the next 10 years. Special economic zone companies benefit from reduced rates.
Standard Rate
30%
Capital Gains Tax
Capital gains tax in Kenya is levied at 15% on the net gain from the transfer of property situated in Kenya, including land, buildings, and marketable securities. The rate was increased from 5% to 15% in 2023. The first KES 3 million gain from the sale of a primary residence is exempt. Transfers between spouses and on death are also exempt.
Rate
15%
VAT / Sales Tax
Kenya's VAT is levied at 16% on taxable goods and services. Exempt supplies include unprocessed agricultural products, medical and educational services, and financial services. Zero-rated supplies include exports and goods supplied to EPZ enterprises. Mandatory registration applies for businesses with annual taxable supplies exceeding KES 5 million.
Standard Rate
16%
Cryptocurrency Tax
Kenya has introduced a digital asset tax (DAT) at 3% on the transfer or exchange value of digital assets, including cryptocurrency. This is a final tax for non-residents but an advance tax for residents that can be offset against income tax. Additionally, income from crypto trading may be subject to regular income tax. The Capital Markets Authority has been developing a regulatory framework for digital assets.
Tax Treaties
Kenya has approximately 15 double taxation agreements in force. The treaty network covers major trading and investment partners. Kenya is also a member of the East African Community, which provides certain tax coordination benefits.
Treaty Network
15
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Kenya
See how much you could save by moving here from your current country.
+$8K
Tax in United States
$24K
24.4% effective
Tax in Kenya
$16K
16% effective
You Save
34.3%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
