How filing taxes works in Kenya
Filing taxes in Kenya is a mandatory process for individuals and businesses. The Kenya Revenue Authority (KRA) is responsible for tax collection, and compliance with tax regulations is essential to avoid penalties. This guide explains how tax filing works, who needs to file, payment methods, and key tax considerations in Kenya. Summary of Income Tax in Kenya Definition: Income tax is a direct tax imposed on income from business, employment, rent, dividends, interests, pensions, and more. Collection Methods: Pay As You Earn (PAYE) Withholding Tax Installment Tax Advance Tax Turnover Tax Capital Gains Tax Individual Income Tax: Income tax applies to all income earned or derived in Kenya, for both residents and non-residents. Tax Bands & Rates (Effective 1st July 2023): First KES 288,000 (KES 24,000/month) – 10% Next KES 100,000 (KES 8,333/month) – 25% Next KES 5,612,000 (KES 467,667/month) – 30% Next KES 3,600,000 (KES 300,000/month) – 32.5% Income