Business tax in Kenya runs through the Kenya Revenue Authority and its iTax portal. Resident companies are generally taxed at 30 percent on taxable income, and non resident companies at a higher rate reported as 37.5 percent. The standard VAT rate is 16 percent, with registration generally required where taxable turnover exceeds a threshold commonly reported as KES 5 million in a twelve month period. A KRA PIN is required to file returns, register for taxes, and open a business bank account. This page is general information, not tax advice.
- Corporate income tax
- Resident 30 percent, non resident 37.5 percent
- VAT
- Standard 16 percent, filed monthly
- VAT threshold
- Commonly reported as KES 5 million turnover
- Filing
- Kenya Revenue Authority iTax portal
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How business tax works in Kenya
The compliance picture has a few moving parts. As of 25 February 2026, every business needs a KRA PIN, the tax identification number issued by the Kenya Revenue Authority and registered free of charge through iTax, which is also where returns are filed. A company pays corporate income tax on its taxable profit, generally at 30 percent if resident and at a higher rate reported as 37.5 percent if non resident, such as a branch of a foreign company. If the business sells taxable goods or services above the registration threshold, it also charges and remits VAT. Rates and rules change, so confirm the current position with the Kenya Revenue Authority or a tax adviser.
Corporate income tax and VAT
Corporate income tax is charged on taxable income, generally at 30 percent for a resident company and at a higher rate reported as 37.5 percent for a non resident company. VAT has a standard rate of 16 percent and a zero rate for certain goods and services, and VAT returns are generally filed monthly by the 20th of the following month. Registration for VAT is generally required once taxable turnover exceeds the threshold, commonly reported as KES 5 million in a twelve month period.
Filing on iTax and the role of the bank account
Returns are filed on the iTax portal, and the Kenya Revenue Authority uses iTax automation and reporting from financial channels in its enforcement, with penalties and interest for late filing or payment. A business bank account does not file taxes for you, but keeping business income and expenses in a dedicated account and reconciling to your returns makes compliance easier and supports clean records.
What to keep on top of
Three points keep a business compliant in Kenya, as of 25 February 2026. Verify with the Kenya Revenue Authority or a tax adviser
- Your KRA PIN and registrations, since the PIN is needed to file, to register for VAT or other taxes, and to open a business bank account.
- Which taxes apply, since corporate income tax, VAT, and employment taxes have different rates and filing dates, and VAT depends on your turnover.
- Filing on time through iTax, since late filing or payment attracts penalties and interest under the Kenya Revenue Authority rules.
Questions about tax and compliance in Kenya
What is the corporate income tax rate in Kenya?
When does a business have to register for VAT in Kenya?
Do I need a KRA PIN for tax compliance in Kenya?
How does a business bank account relate to KRA compliance?
Fees, features, and eligibility change and vary by region. This page was last reviewed on 25 February 2026. Confirm current terms with the provider before applying.