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 | 10% | 15% |
| Interest | 15% | 15% |
| Royalties | 5% | 20% |
| Management / Professional Fees | 5% | 20% |
| Contractual Fees | 3% | 20% |
| Rent (Immovable Property) | 10% | 30% |
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 tool focuses on common categories where a quick estimate is useful, but some dividend, rent, treaty, and qualifying-interest cases still need a manual check against current KRA guidance.
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. In practice, non-resident rates are often higher than resident rates, which is why treaty relief and proper classification matter.
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.
Where a non-resident supplies management, professional, contractual, royalty, or similar services into Kenya, the standard non-resident rates can apply subject to treaty relief and the exact legal character of the payment. This is why the resident/non-resident split matters in practice.
Compliance is critical because KRA treats withholding tax as a payer-side obligation. The current KRA filing page highlights late-payment penalties, and businesses should not assume older blog posts or internal memos still reflect the latest operational deadline language on iTax.
KRA's current File and Pay page says WHT should be remitted within 5 working days after deduction. Because older KRA content still mentions the 20th of the following month, it is safest to follow the current filing page and confirm the timing shown in iTax for the exact obligation you are filing.
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.
Any person or entity making a payment that is subject to WHT is required to deduct it at source. This includes employers, companies, government agencies, and individuals making qualifying payments. The deducting agent must remit the tax to KRA via iTax and issue a withholding tax certificate to the payee.
Some Kenyan withholding items have special rules, qualifying/final-tax treatment, or category-specific rates that are not well represented by one simple resident/non-resident dropdown. This tool keeps to the common categories with clearer KRA-backed percentages.
Yes. Kenya has Double Taxation Agreements with over 15 countries including the UK, Germany, France, India, and South Africa. These treaties can reduce WHT rates on dividends, interest, and royalties. To claim treaty rates, the non-resident must apply to KRA with a valid tax residency certificate before the payment is made.
If a payer fails to deduct WHT, they become personally liable for the amount that should have been deducted. KRA can assess the payer for the tax, plus a 20% penalty on the amount not deducted and 1% monthly interest. Persistent non-compliance can lead to prosecution under the Tax Procedures Act.