Inventory Valuation: Inventory is recorded at the lower of cost or net realizable value, except for biological assets, which are assessed based on values set by the Commissioner.

Capital Gains: For details on capital gains taxation, refer to the Capital Gains Tax (CGT) section.

Dividend Income:

• Dividends from Kenyan sources paid to local residents are subject to 5% tax, unless the receiving company owns at least 12.5% of the voting rights in the distributing company.
• Dividends to non-residents and foreign parent companies incur 15% withholding tax (WHT).
• The WHT on dividends is final, meaning no further taxation applies. 

Interest Income: Generally taxable unless specifically exempt under tax laws.

Royalty Income:

• Included in taxable income and subject to 30% corporate income tax (CIT).
• If Kenyan WHT applies to royalties received, the taxpayer can use it as a credit against their overall tax liability.

Foreign Income:

• Kenya taxes income earned within its jurisdiction.
• Certain payments made to non-residents, such as royalties, interest, and professional fees, are considered Kenyan-sourced income and subject to tax.