Tax compliance is an ever-evolving challenge for businesses in Kenya. Understanding the landscape and engaging proper support can save you significant time, money, and legal risk.
Key Tax Obligations
Corporate Income Tax
Companies are taxed at 30% on taxable profits. Resident companies are taxed on worldwide income, while non-resident companies are taxed on Kenya-sourced income only.
Value Added Tax (VAT)
Standard rate of 16% applies to most goods and services. Some items are zero-rated or exempt. Businesses with turnover above KES 5 million must register for VAT.
Pay As You Earn (PAYE)
Employers must deduct and remit income tax from employee salaries monthly.
Withholding Tax
Various rates apply to payments such as consultancy fees, management fees, dividends, and interest.
Common Compliance Pitfalls
- Late filing of returns
- Incorrect classification of income
- Failure to account for withholding obligations
- Poor record keeping
- Not seeking professional advice on complex matters
How NK Can Help
We possess the infrastructure and skilled resources necessary to manage the ever-increasing tax complexities. Think of NK as your back office for corporate tax services — from advisory and compliance to dispute resolution.
Contact us for a tax health check and ongoing compliance support.