This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our PRIVACY POLICY for more information on the cookies we use and how to delete or block them.

Double taxation and treaties

Treaty countries

Kenya has double tax avoidance treaties with the following countries:

1) Canada

2) Denmark

3) France

4) Germany

5) India

6) Iran

7) Mauritius (Possibly with effect from 1 January 2017).

8) Norway

9) Sweden

I0) United Kingdom

11) Zambia

12) South Africa

Some of these treaties provide for preferential withholding tax rates. In most cases however, the standard tax rates set out above apply. The treaties will in most cases allow for the set-off of withholding tax against tax liability in the respective countries. Treaties with East African partner states, Kuwait, Iran, Mauritius and UAE have been concluded but not ratified.

Preferential treaty withholding tax rate

All other qualifying payments will attract withholding tax at the standard withholding tax rates

	UK	Germany	Canada	India	France
Management & professional fees	12.5%	15%	15%	17.5%
Royalties	15%	15%	15%		10%
Interest					12%

Withholding tax paid abroad

Withholding tax paid abroad may be claimed against Kenya income tax only if there is a unilateral or bilateral provision for relief. Kenya has only eleven bi-lateral tax treaties that allow for direct tax offsets (and relief from double taxation).

Where direct tax set-offs are not possible, withholding tax paid abroad (where the income is taxable in Kenya) is deductible as an expense. Unilateral relief of foreign tax in Kenya setting is extended to Kenyan nationals in respect of employment, sports and entertainment income required to be reported and taxed in Kenya.