Last reviewed – 26 February 2025
Introduction
Corporate Income Tax (CIT) in Kenya is levied on both resident and non-resident companies based on their income accrued or derived from Kenya.
Resident companies are taxed on their worldwide income, while non-residents are only taxed on income attributed to their Kenyan Permanent Establishment (PE). Special tax rates apply to certain industries and entities to promote economic growth and investment.
1.Taxation of Resident & Non-Resident Companies
| Category | Taxation Scope | CIT Rate (%) |
|---|---|---|
|
Resident Companies |
Taxed on worldwide income |
30% |
|
Non-Resident Companies (Branches/PEs) |
Taxed only on income attributable to a Kenyan PE |
30% |
|
Deemed Taxable Profit |
10% of gross turnover |
Applicable to certain cases |
2. Special CIT Rates
| Entity | CIT Rate (%) |
|---|---|
|
Export Processing Zone (EPZ) Enterprises
|
0% (first 10 years) 25% (next 10 years) 30% thereafter |
|
Registered Unit Trusts/Collective Investment Schemes |
Exempt (subject to conditions) |
|
Companies Listed on the Securities Exchange |
25% (first 5 years)
|
|
Special Economic Zone (SEZ) Enterprises, Developers & Operators
|
10% (first 10 years) 15% (next 10 years) |
|
Local Motor Vehicle Assembly Companies |
15% (first 5 years) 15% (next 5 years, subject to conditions) |
|
Companies Operating Carbon Market Exchanges or Emission Trading Systems |
15% (first 10 years)
|
|
Shipping Companies |
15% (first 10 years) |
3. CIT on Non-Resident Gross Income
| Income Type | Tax Rate (%) |
|---|---|
|
Transmission of messages |
5% |
|
Ownership or operation of ships and aircraft |
2.5% |
|
Demurrage charges |
2.5% |
4. Local Income Taxes
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