Paying Taxes in


Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Kenya to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Standards levy 2 0.2% net sales 3.54
Corporate income tax 5 52 30% taxable profit 29.81
Employer paid - Social security contributions (NSSF) 12 63 5% up to KES200 per person per month gross salaries 1.52
Single business permit - manufacturer 1 KES 100,000 fixed fee 1.06
Tax on interest 0 15% interest income 0.38 included in other taxes
Employer paid - Training or apprentice tax 2 KES 50 per employee per month number of employees 0.38
Land rates 1 0.6% land value 0.30
Road maintenance levy 0 jointly KES 9 per liter fuel consumption 0.28
Capital Gains Tax 1 5% capital gains 0.25
Advance motor vehicle tax 1 KES 1,500 per ton vehicle weight 0.24 included in other taxes
Single business permit - trader 1 KES 20,000 fixed fee 0.21
Tax on check transactions 1 KES 2 per check number of checks 0.01
Land rent 1 various rates 0.01
Petroleum development duty 0 jointly KES 0.4 per liter fuel consumption 0.01
Stamp duty on contracts 1 various rates type of contract 0.00 small amount
Employee paid - Social security contributions (NSSF) 0 jointly 5% up to KES200 per person per month gross salaries 0.00 withheld
Employee paid - National hospital insurance fund (NHIF) 0 jointly various rates gross salaries 0.00 withheld
Value added tax (VAT) 1 online 81 16% value added 0.00 not included
Fuel tax - excise duty 1 KES 10.31 per liter fuel consumption 0.00 small amount
Totals: 31.0 195.5 37.4
  • Taxes by type Answer
    Profit tax (% of profit) 30.1
    Labor tax and contributions (% of profit) 1.9
    Other taxes (% of profit) 5.4
    Answer Score
    Postfiling index (0-100) 32.1
    VAT refunds
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process Restricted to international traders
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A 0.0
    Time to obtain a VAT refund (weeks) N/A 0.0
    Corporate income tax audits
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 21.5 63.3
    Time to complete a corporate income tax audit (weeks) 11.1 65.2
    Administrative appeal process
    First level administrative appeal authority Commissioner of the Revenue Authority
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit