Africa · Tax guide

Kenya

Kenya taxes companies at 30%, offers a 1.5% turnover tax to small businesses, charges VAT at 16%, and requires every business to invoice through the eTIMS system. Large groups pay a minimum top-up tax. Taxes are administered by the Kenya Revenue Authority (KRA).

Updated 1 October 2026 · 8 of 8 figures checked against official sources

Check your obligations

At a glance

Corporate income tax
30%

Residents and branches

Turnover tax
1.5%

Small businesses up to KSh 25,000,000

VAT
16%

Registration above KSh 5,000,000

Withholding on royalties abroad
20%

And on management fees

Minimum top-up tax
15%

Large multinational groups

Corporate income tax and turnover tax

Companies and branches pay 30%, with four instalments during the year and a return within six months of the year-end. Small businesses with turnover up to KSh 25,000,000 that are not VAT-registered can pay turnover tax of 1.5% of gross sales instead, filed monthly.

VAT and eTIMS

VAT is 16%. Registration is required once taxable supplies exceed KSh 5,000,000 in twelve months; returns are monthly. Every business must issue invoices through KRA's eTIMS, and expenses without valid eTIMS invoices are not deductible.

Payments abroad and the minimum tax

Dividends paid to non-residents carry 15%, and royalties and management or professional fees 20%, unless a treaty lowers them. Large multinational groups pay Kenya's domestic minimum top-up tax at 15%.

Key dates

  • By the 9th of each monthPAYE, NSSF, health insurance and housing levy
  • By the 20th of each monthVAT, withholding and turnover tax returns
  • Within six months of the year-endCorporate income tax return

Figures and sources

8 figures
  • Corporate income tax rate (residents and branches)30%
    Income Tax Act (Cap. 470), Third Schedule · Income Tax Act, Third Schedule
    Checked against the official source
  • Turnover tax rate1.5%
    Income Tax Act, s.12C
    Checked against the official source
  • VAT rate16%
    VAT Act, 2013 · s.5
    Checked against the official source
  • Turnover limit for turnover taxKSh 25,000,000
    Income Tax Act, s.12C · Income Tax Act s.12C
    Checked against the official source
  • Taxable supplies in 12 months above which VAT registration is requiredKSh 5,000,000
    VAT Act, 2013 · s.34
    Checked against the official source
  • Withholding on royalties and management or professional fees paid to non-residents20%
    Income Tax Act, Third Schedule · Income Tax Act, Third Schedule
    Checked against the official source
  • Minimum top-up tax rate15%
    Tax Laws (Amendment) Act, 2024 · Income Tax Act s.12FA (as restated in the draft regulations)
    Checked against the official source
  • Withholding on dividends paid to non-residents15%
    Income Tax Act, Third Schedule · Income Tax Act, Third Schedule
    Checked against the official source

Indicative only. This assessment is a high-level overview of tax obligations in Kenya based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Kenya (a certified public secretary or tax agent) before making compliance decisions.