OpenAccountants/Kenya/Kenya Corporate Income Tax

Kenya Corporate Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: corporate income tax for Kenya (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Kenya, 2025

Every figure is drawn from this Tax Guide and cited to its source.

General taxation approach

Resident companies are taxed at a flat 30% on worldwide income attributable to Kenya, while branches of non-resident companies pay a higher rate. Tax is paid in quarterly instalments with a balancing payment after year end.

Resident company corporation tax rate

30Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/taxes-on-corporate-income

Branch of a non-resident company (permanent establishment) rate

37.5Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/taxes-on-corporate-income

Reduced rate — start-ups certified by the Nairobi International Financial Centre Authority

15% for the first 3 years, then 20% for the following 4 yearsIncome Tax Act (Cap 470) — https://ronalds.co.ke/a-complete-guide-to-taxation-in-kenya-2025/

Tax base

Net taxable business profit (accounting profit adjusted for disallowed expenses, capital allowances and exempt income); income accrued in or derived from KenyaIncome Tax Act (Cap 470) — https://taxsummaries.pwc.com/kenya/corporate/income-determination

Capital Gains Tax (CGT) on transfer of property/securities

15% on the net gainIncome Tax Act (Cap 470), Eighth Schedule — https://njagaadvocates.com/comprehensive-guide-to-business-taxes-in-kenya-2025/

Withholding tax on dividends to residents

5% (exempt where the resident recipient company controls 12.5%+ of the payer)Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes

Withholding tax on dividends to non-residents

10% (5% for citizens of East African Community member states on listed shares)Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes

Withholding tax on interest

15% (general rate, residents and non-residents)Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes

Withholding tax on royalties — residents

5Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes

Withholding tax on royalties — non-residents

20Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes

Withholding tax remittance deadline

By the 20th day of the month following deductionIncome Tax Act (Cap 470); Tax Procedures Act, 2015 — https://www.kra.go.ke/individual/filing-paying/types-of-taxes/individual-withholding-tax

Instalment (advance) tax

Paid quarterly — by the 20th of the 4th, 6th, 9th and 12th months of the accounting periodIncome Tax Act (Cap 470); Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration

Corporation tax return filing deadline

Within 6 months after the end of the accounting periodTax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration

Balance of tax payment deadline

Within 4 months after the end of the accounting period (by the last day of the 4th month) ((approx — confirm))Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

Corporation tax rates, base and deadlines

General taxation approach — Resident companies are taxed at a flat 30% on worldwide income attributable to Kenya, while branches of non-resident companies pay a higher rate. Tax is paid in quarterly instalments with a balancing payment after year end.
Resident company corporation tax rate — 30 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/taxes-on-corporate-income)
Branch of a non-resident company (permanent establishment) rate — 37.5 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/taxes-on-corporate-income)
Reduced rate — start-ups certified by the Nairobi International Financial Centre Authority — 15% for the first 3 years, then 20% for the following 4 years percent (Income Tax Act (Cap 470) — https://ronalds.co.ke/a-complete-guide-to-taxation-in-kenya-2025/)
Tax base — Net taxable business profit (accounting profit adjusted for disallowed expenses, capital allowances and exempt income); income accrued in or derived from Kenya (Income Tax Act (Cap 470) — https://taxsummaries.pwc.com/kenya/corporate/income-determination)
Capital Gains Tax (CGT) on transfer of property/securities — 15% on the net gain percent (Income Tax Act (Cap 470), Eighth Schedule — https://njagaadvocates.com/comprehensive-guide-to-business-taxes-in-kenya-2025/)
Withholding tax on dividends to residents — 5% (exempt where the resident recipient company controls 12.5%+ of the payer) percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)
Withholding tax on dividends to non-residents — 10% (5% for citizens of East African Community member states on listed shares) percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)
Withholding tax on interest — 15% (general rate, residents and non-residents) percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)
Withholding tax on royalties — residents — 5 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)
Withholding tax on royalties — non-residents — 20 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)
Withholding tax remittance deadline — By the 20th day of the month following deduction (Income Tax Act (Cap 470); Tax Procedures Act, 2015 — https://www.kra.go.ke/individual/filing-paying/types-of-taxes/individual-withholding-tax)
Instalment (advance) tax — Paid quarterly — by the 20th of the 4th, 6th, 9th and 12th months of the accounting period (Income Tax Act (Cap 470); Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration)
Corporation tax return filing deadline — Within 6 months after the end of the accounting period (Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration)
Balance of tax payment deadline — Within 4 months after the end of the accounting period (by the last day of the 4th month) ((approx — confirm)) (Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration)

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Corporation tax rates, base and deadlines

General taxation approach — Resident companies are taxed at a flat 30% on worldwide income attributable to Kenya, while branches of non-resident companies pay a higher rate. Tax is paid in quarterly instalments with a balancing payment after year end.

Resident company corporation tax rate — 30 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/taxes-on-corporate-income)

Branch of a non-resident company (permanent establishment) rate — 37.5 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/taxes-on-corporate-income)

Reduced rate — start-ups certified by the Nairobi International Financial Centre Authority — 15% for the first 3 years, then 20% for the following 4 years percent (Income Tax Act (Cap 470) — https://ronalds.co.ke/a-complete-guide-to-taxation-in-kenya-2025/)

Tax base — Net taxable business profit (accounting profit adjusted for disallowed expenses, capital allowances and exempt income); income accrued in or derived from Kenya (Income Tax Act (Cap 470) — https://taxsummaries.pwc.com/kenya/corporate/income-determination)

Capital Gains Tax (CGT) on transfer of property/securities — 15% on the net gain percent (Income Tax Act (Cap 470), Eighth Schedule — https://njagaadvocates.com/comprehensive-guide-to-business-taxes-in-kenya-2025/)

Withholding tax on dividends to residents — 5% (exempt where the resident recipient company controls 12.5%+ of the payer) percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)

Withholding tax on dividends to non-residents — 10% (5% for citizens of East African Community member states on listed shares) percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)

Withholding tax on interest — 15% (general rate, residents and non-residents) percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)

Withholding tax on royalties — residents — 5 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)

Withholding tax on royalties — non-residents — 20 percent (Income Tax Act (Cap 470), Third Schedule — https://taxsummaries.pwc.com/kenya/corporate/withholding-taxes)

Withholding tax remittance deadline — By the 20th day of the month following deduction (Income Tax Act (Cap 470); Tax Procedures Act, 2015 — https://www.kra.go.ke/individual/filing-paying/types-of-taxes/individual-withholding-tax)

Instalment (advance) tax — Paid quarterly — by the 20th of the 4th, 6th, 9th and 12th months of the accounting period (Income Tax Act (Cap 470); Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration)

Corporation tax return filing deadline — Within 6 months after the end of the accounting period (Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration)

Balance of tax payment deadline — Within 4 months after the end of the accounting period (by the last day of the 4th month) ((approx — confirm)) (Tax Procedures Act, 2015 — https://taxsummaries.pwc.com/kenya/corporate/tax-administration)