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Tax Overview for Expats
Kenya's tax landscape for expats depends critically on your visa type and how many days you spend in the country. The Digital Nomad Permit offers a clean exemption on foreign income — but the 183-day tax residency rule creates a planning consideration.
- Class N DN Permit holders: foreign-sourced income is not subject to Kenyan income tax
- 183-day rule: spending more than 183 days in Kenya in a tax year can trigger full tax residency
- Tax resident: liable for Kenyan income tax on worldwide income at progressive rates
- Progressive PIT rates: 10% up to ~KES 288,000/year; up to 30% at highest bracket
- Kenya Revenue Authority (KRA) administers tax; file via iTax portal (itax.kra.go.ke)
- Corporate tax: 30% flat rate for resident companies
- VAT: 16% standard rate (8% on petroleum products)
- Withholding tax applies to dividends, royalties, and service fees paid to non-residents
- Seek advice from a Kenya-based tax professional (e.g., PwC Kenya, KPMG Kenya, local CPA firms)