Withholding tax in Kenya: resident rates, due dates and examples
The rates on fees, rent, interest and other payments, with a worked example and the mistakes to avoid.
Resident rates
| Payment | Rate |
|---|---|
| Management, professional, consultancy and training fees | 5% |
| Contractual fees | 3% |
| Commercial rent | 10% |
| Interest | 15% |
| Royalties, insurance broker commission, digital content, marketing | 5% |
| Winnings (reintroduced by the Finance Act 2026) | 20% |
| Scrap metal (reintroduced by the Finance Act 2026) | 1.5% |
The Finance Act 2026 also treats card interchange and merchant fees as management or professional fees. Non-resident rates are usually higher, often 20%.
Example
You pay a consultant KES 500,000 before VAT. Withhold 5%, which is KES 25,000, and pay the consultant KES 475,000. Remit the KES 25,000 to KRA by the 20th and give a certificate. Try your own numbers in the withholding tax calculator.
Common mistakes
- Calculating on the VAT-inclusive amount. It is generally worked out before VAT, see our VAT guide.
- Not issuing certificates, so the supplier cannot claim the credit.
- Paying late. See the cost in the penalty calculator and the dates in monthly deadlines.
General information only, not tax advice. Rates and rules were checked in October 2026 and can change. Confirm with KRA or a qualified professional.
Calculators and guides to read next
Withholding tax calculatorDeduct the right tax on fees, rent and interest.VAT calculatorAdd or remove 16% VAT in one step.eTIMS expense risk calculatorWhat missing supplier invoices could cost. VAT registration in Kenya: threshold, rate, returns and penaltiesGuide · VATKRA monthly deadlines: PAYE, NSSF, SHIF, housing levy, VAT and moreGuide · Compliance