Kenya: Living There - Tax Issues

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Last Updated: May 11, 2009

Living there

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.

Kenya - more data and information

Lawyers (attorneys) with property law practices in Kenya