INDIVIDUAL TAXATION
Residents of Kenya are liable to tax on their worldwide income. Worldwide income is limited only to income earned from employment or rendering services abroad and on income from a business carried partly within and partly outside Kenya. Married couples are taxed jointly.
INCOME TAX
Income in Kenya is the following: business income, employment income, professional income, rental income, dividends, interest, income from agricultural activities, and royalties, pensions or annuities. Taxable income is gross income less any allowable deductions.
Income is generally taxed at progressive rates, from 10% to 30%. Personal reliefs are only granted to resident taxpayers.
INCOME TAX |
| TAXABLE INCOME, KES (US$) |
TAX RATE |
| Up to 121,968 (US$1,562) |
10% |
| 121,968 – 236,880 (US$3,033) |
15% on band over US$1,562 |
| 236,880 – 351,792 (US$4,504) |
20% on band over US$3,033 |
| 351,792 – 466,704 (US$5,976) |
25% on band over US$4,504 |
| Over 466,704 (US$5,976) |
30% on all income over US$5,976 |
| Source: Global Property Guide |
CAPITAL GAINS
No tax is levied on capital gains realized from the sale of real property in Kenya.
PROPERTY TAX
Property Tax
This is an annual tax levied by the local government depending on the location and value of the property. It is usually about 1% of the property value.
Land Tax
Land tax is a local tax with rates varying depending on the location of the land. The highest rate is 8% which applies in Nairobi.
Add your comment