East & Southern Africa
Kenya tax rates 2026
This is largely a source-based system, with a top personal rate of 35%, a corporate rate of 30%, and VAT at 16%. Residents are also taxed on their worldwide employment income.
The taxes
| Personal income (top) | 35%Progressive 10%-35%; top rate above KES 800,000/month. |
|---|---|
| Corporate income | 30% |
| Capital gains | 15% |
| VAT | 16% |
| Dividends (WHT) | 15% (non-resident); 5% resident |
| Interest (WHT) | 15% |
| Royalties (WHT) | 20% |
| Social security (employee) | 6% NSSF + 2.75% SHIF + 1.5% housing levy |
| Social security (employer) | 6% NSSF + 1.5% housing levy |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | County land rates; 7.5% rental income tax |
| Other | Affordable Housing Levy 1.5% |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
A special regime for new arrivals
Kenya's tax system is substantially territorial in practice. The Revenue Authority's position is that income is taxable only if it is accrued in or derived from Kenya. Foreign dividends, interest and capital gains earned by a resident individual fall outside the charge. This rests on KRA practice and Tribunal rulings interpreting a broadly worded section 3(1), not on codification. The Nairobi International Financial Centre offers a 15% corporate tax rate for 10 years, then 20%.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Kenya
The residency and citizenship routes that lead here, weighed against the tax picture above.