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WITHHOLDING TAX SUMMARY:

Last reviewed – 26 February 2025

Withholding Tax (WHT) in Kenya applies to various payments at rates ranging from 3% to 25%. For residents, WHT can be either a final tax or offset against Corporate Income Tax (CIT). For non-residents, WHT is typically a final tax.

Withholding Tax Rates by Payment Type

Category Resident Rate (%) Non-resident Rate (%)

Dividends
Shareholding >12.5%
Exempt
15
Shareholding <12.5%
5
15
SEZ-licensed entities
Exempt
Exempt

Interest
Bearer Instruments
25
25
Govt. bonds (≥ 2 years)
15
15
Bonds (≥ 10 years)
10
N/A
Bonds issued abroad (≥ 2 years)
7.5
7.5

Other Interest
15
15

Royalties & Fees
Royalties
5
20
Professional fees
5
20
Consultancy fees (EAC citizens)
5
15
Training services
5
20

Rent & Leasing
Immovable property
N/A
30

Other Assets
N/A
15

Other Categories
Gaming & betting winnings
20
20
Digital content creators
5
20
Supply of goods to public entities
0.5
5
Digital platform operators
5
20

Oil & Gas Sector Withholding Tax

Payment Type Non-resident Rate (%)
Dividends
10
Interest
15
Natural resource income
20
Professional services
10

Tax Treaties (DTTs) and Reduced Rates

Lower rates apply to non-residents from countries with a Double Tax Treaty (DTT) with Kenya.

Country Dividends (%) Interest (%) Royalties (%) Professional Fees (%)
Canada
15
15
15
15
Denmark
20
20
20
20
France
10
12
10
N/A
Germany
15
15
15
15
India
10
10
10
10
Norway
15
20
20
20
Qatar
5
10
10
N/A
Seychelles
5
10
10
10
South Africa
10
10
10
N/A
South Korea
10
12
10
N/A
Sweden
15
15
20
20
UAE
5
10
10
N/A
UK
15
15
15
12.5
Zambia

0

0

0
20

Major points to consider:

  1. Interest paid by the government and the Central Bank of Kenya is tax-exempt.
  2. No Kenyan tax applies to payments already taxed in Zambia.
  3. 8% dividend rate applies if the recipient holds at least 25% of the company’s capital.
  4. A 10% rate applies to dividend recipients owning less than 10% of the payer’s capital.
  5. Professional fees in some treaties follow OECD business income rules, subject to taxation only in the recipient’s country.

 

General Rule: If a DTT rate is higher than Kenya’s standard rate, the lower rate applies.

Related Content

Tax Landscape
Tax Overview
Tax Rates

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