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Taxes for expats in Kenya

Cheryl

Hello everyone,

When settling in and living in Kenya, you will also need to navigate the local tax system. In order to help newcomers and expats ease their tax-related experience, we would like to invite you to share your experience.

What are the taxes applicable to expats in Kenya?

Have there been any recent changes in tax regulations that expats should know about?

Are there any local tax incentives or agreements with your home country?

Have you come across any unexpected or unusual local tax?

What do you wish you had known earlier about taxes in Kenya?

Share your insights and experience.

Thank you for your contribution.

Cheryl
º£½ÇÂÒÂ× Team

See also

The taxation system in Kenyataxation for gifts (property) in KenyaTaxation of retirement income plus from real estate/tenants?Immigration, tax, accountancy and travel matters in KenyaList of authorized by kra tax agent in nairobi or nyeri
Longonot62

Here goes, but please bear in mind that I’m not an expert:

Income tax is payable by all employees on income derived in Kenya,  whether resident or not. The rate starts at 10% on the first Kes 288,000, rising to a max 35% for income above Kes 9.6 million per annum  (information available on KRS website.


Withholding tax: 15% on savings interest, dividends, government bonds.  30% on rental income for non residents, 10% for residents.


Monthly Rental Income Tax:  7.5% on gross rent over Kes 280,000 per annum.  It’s possible to apply to be exempt in which case rental income will be added to annual income and taxed that way.


VAT:  16% except on zero rated items. Businesses supplying goods/services of over Kes 5 million per year must be registered.


There are a number of other more hidden taxes such as excise duty of 20% to 15% on phone and internet services (included within the monthly charges), tax on fuels, tax on car insurance.


Some countries have a dual tax agreement with Kenya, ie you won’t be taxed twice and some do not, ie: USA.