WHT is levied at varying rates (3% to 25%) on a range of payments to residents and non-residents. Resident WHT is either a final tax or creditable against CIT. Non-resident WHT is a final tax.
|Payments||Resident WHT rate (%)||Non-resident WHT rate (%)|
|Dividend > 12.5% voting power||Exempt||15|
|Dividend < 12.5% voting power||5||15|
|Government bearer bonds (maturity ≥ 2 years)||15||15|
|Bearer bonds (maturity ≥ 10 years)||10||N/A|
|Winnings from gaming and betting||20||20|
|Management or professional fees||5||20|
|Consultancy fees – Citizen of EAC member states||5||15|
|Training (including incidental costs)||5||20|
|Others (other than immovable)||N/A||15|
|Pension/retirement annuity||Varied (1)||5|
|Sales promotion, marketing, advertising services, and transportation of goods (excluding air and shipping transport services)||20 (2)|
|Insurance or reinsurance premiums||5 (3)|
|Sale of property or shares in oil, mining, or mineral prospecting companies||10||20|
- This will vary depending on the payments paid out.
- For EAC citizens, the rate shall not apply to transportation of goods.
- Shall not apply to insurance or reinsurance premiums paid for aviation that covers aircraft, cargo, and passengers.
Oil and gas sector WHT rates
WHT rates applicable on payments to non-residents in the oil and gas sector are shown in the table below:
|Payments||Non-resident (oil and gas) WHT rate (%)|
|Natural resource income||20|
|Management or professional fees||12.5|
Double tax treaties (DTTs)
Lower rates may apply to non-residents where there is a DTT in force. The table below shows the maximum rates of tax that recipients in those countries with a DTT with Kenya can be charged on dividends, interest, royalties, and management and professional fees. The table only includes agreements that are currently in force.
|South Korea||10 (3)||12||10|
|United Arab Emirates||5||10||10|
|United Kingdom||15||15 (1)||15|
|Zambia||0 (2)||0 (2)||0 (2)|
- Interest paid by the government and the Central Bank of Kenya is tax-exempt.
- No Kenya tax is due if subject to tax in Zambia.
- 8% if the beneficiary holds at least 25% of the capital of the company paying the dividends.
- A rate of 10% is applicable where the beneficial owner is a company (other than a partnership) that directly or indirectly holds less than 10% of the capital of the company paying the dividends.
Where the treaty rate is higher than the non-treaty rate, the lower rate applies.