Register for tax and understand the rates
KRA registration is automatic via BRS — but you must add the correct tax obligations.
Headline rates that affect foreign entrants
| Tax | Rate | Trigger |
|---|---|---|
| Corporate tax (resident subsidiary) | 30% | On worldwide income |
| Corporate tax (non-resident branch) | 37.5% | On Kenya-source income |
| VAT | 16% | Compulsory at KES 5M turnover |
| Withholding tax on dividends to parent | 5% (subsidiary) | Plus treaty relief if applicable |
| PAYE | 10–35% | On every employee from month one |
| Digital Service Tax | 1.5% | If you sell digital services to Kenyan users |
Kenya has DTAs with the UK, India, France, Germany, Canada, South Africa, UAE, Mauritius and others. If your parent sits in a treaty country, you can often reduce withholding tax on dividends, interest, and royalties — get a tax advisor to apply for treaty relief before the first remittance.
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
