Last reviewed – 26 February 2025
The Kenyan tax landscape has seen significant changes in recent years, particularly in personal income tax (PIT) and residential rental income tax. Here’s a breakdown of the key updates effective 1 July 2023 and 1 January 2024.
a) Personal Income Tax (PIT)
Kenyan resident employees are taxed on their worldwide income, while non-residents are taxed only on income earned or derived from Kenya.
Revised Personal Income Tax Rates (Effective 1 July 2023)
| Tax Annual Taxable Income (KES) | Tax Rate (%) |
|---|---|
|
On the first 288,000 |
10% |
|
On the next 100,000
|
25%
|
|
On the next 5,612,000 |
30% |
|
On the next 3,600,000 |
32.5% |
|
Above 9,600,000 |
35%
|
b) Residential Rental Income Tax
This tax applies to residents earning rental income from Kenyan residential properties.
| Annual Gross Rental Income (KES) | Tax Rate (%) |
|---|---|
|
Up to KES 15 million
|
7.5%
|
N/B: Landlords preferring the normal tax regime must apply in writing to the Commissioner.
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