Calculate KRA Withholding Tax on payments including dividends, interest, rent, royalties, management and professional fees for residents and non-residents.
| Payment Type | Resident | Non-Resident |
|---|---|---|
| Dividends | 5% | 15% |
| Interest | 15% | 15% |
| Royalties | 5% | 20% |
| Management / Professional Fees | 5% | 20% |
| Contractual Fees | 3% | 20% |
| Rent (Immovable Property) | 10% | 30% |
| Appearance / Endorsement | 5% | 20% |
| Insurance Commission | 5% | 20% |
| Pension / Retirement | 5% | — |
| Bearer Instrument Interest | 25% | 25% |
Withholding Tax in Kenya is a mechanism through which the Kenya Revenue Authority (KRA) collects tax at the point of payment. The payer deducts a specified percentage from the gross payment and remits it directly to KRA. This system applies to various payment types including dividends, interest, royalties, rent, management fees, professional fees, and contractual payments.
For Kenyan residents, WHT is an advance tax — it's credited against the recipient's annual income tax liability. If the WHT deducted exceeds the final tax computed, the excess is refundable. For non-residents, WHT is typically the final tax on that income, meaning no further filing is required in Kenya. This makes the non-resident WHT rates generally higher — for instance, non-residents pay 15% on dividends vs 5% for residents, and 20% on management fees vs 5% for residents.
Kenya has Double Taxation Agreements (DTAs) with over 15 countries, including the UK, Germany, France, India, and South Africa. These treaties may reduce the standard WHT rates for non-residents. To benefit from treaty rates, the non-resident must provide a tax residency certificate from their home country and apply to KRA for a treaty rate determination before the payment is made.
One notable recent development is the introduction of WHT on payments to non-resident digital service providers, including streaming services, e-commerce platforms, and digital content providers. This was introduced in the Finance Act 2023 as part of Kenya's broader strategy to tax the digital economy. The rate is 20% on the gross payment, though DTAs may modify this.
Compliance is critical — late remittance of WHT attracts a penalty of 20% of the amount due plus interest at 1% per month on the outstanding amount. KRA has increasingly automated WHT compliance through the iTax platform, making it easier for businesses to file and remit on time.
WHT must be remitted by the 20th day of the month following the month in which the payment was made. For example, WHT deducted on a February payment must be remitted by 20th March. Late remittance attracts penalties of 20% plus 1% monthly interest.
Yes, residents can claim WHT as a credit against their annual income tax. If the WHT exceeds your final tax liability, you can apply for a refund through iTax. However, KRA refund processing can take time, so adequate documentation is essential.
Yes. WHT on rent for immovable property is 10% for resident landlords and 30% for non-resident landlords. This is separate from the Monthly Rental Income (MRI) tax of 7.5% that applies to residential rental income between KSh 288,000 and KSh 15 million per year.