Kenya Tax

SYS 1

The Kenyan tax system: framework, principles and administration

How Kenya raises tax: the constitutional and statutory framework, the split between national and county taxes, the Kenya Revenue Authority, and the principles examiners expect a candidate to apply.

SYS 2

Tax planning, avoidance, evasion and anti-avoidance rules

The line between lawful planning, avoidance the Commissioner may disregard and criminal evasion, and the anti-avoidance machinery in the Income Tax Act and Tax Procedures Act.

SYS 3

County government revenue: rates, licences, fees and charges

What a county may tax and charge under Article 209(3), how property rates and single business permits work, and how county revenue is raised, budgeted and collected.

IT 1

Charge to income tax, residence and sources of income

Section 3 of the Income Tax Act: what income is charged, on whom, the residence tests for individuals and companies, and when income accrues in or is derived from Kenya.

IT 2

Employment income and PAYE

Section 5 of the Income Tax Act: what counts as employment income, how benefits are valued, the deductions and reliefs, the PAYE bands and the employer's obligations, with a full 2026 computation.

IT 3

Business income: allowable and disallowable deductions

Sections 4, 15 and 16 of the Income Tax Act: computing the taxable profit of a business from the accounts, what may be deducted, what may not, and the adjustments examiners expect.

IT 4

Investment deductions and capital allowances

The Second Schedule to the Income Tax Act since 2021: investment allowances on buildings and machinery at straight-line rates, the accelerated 100% and 150% allowances, and how disposals are treated.

IT 5

Companies: corporation tax, instalment tax and incentives

How a company's taxable profit is charged at 30%, the branch and repatriation rules, the reduced rates for EPZ, SEZ and other favoured activities, the minimum top-up tax, and the instalment tax calendar.

IT 6

Partnerships, trusts, cooperatives and other persons

How the Income Tax Act treats persons that are not ordinary companies or employees: partnerships and their partners, trusts and estates, cooperative societies, clubs and associations, charities and insurers.

IT 7

Withholding tax

Section 35 of the Income Tax Act: the payments on which tax is deducted at source, the resident and non-resident rates in force, which deductions are final, and the payer's obligations and penalties.

IT 8

Capital gains tax

The Eighth Schedule to the Income Tax Act: the charge on the transfer of land, buildings and unlisted shares at 15%, what a transfer is, how the gain and adjusted cost are computed, the exemptions, and when the tax is paid.

IT 9

Rental income: residential rental income tax and commercial rent

Section 6A's 7.5% final tax on residential rent between KES 288,000 and KES 15 million, the normal regime for commercial and larger landlords, non-resident landlords at 30%, and the eRITS and agent rules.

IT 10

Turnover tax and the taxation of small businesses

Section 12C's turnover tax at 1.5% of gross receipts for businesses with turnover between KES 1 million and KES 25 million, who is excluded, how it interacts with VAT, eTIMS and the normal regime, and when to elect out.

IT 11

Non-residents, the digital economy and international tax

How Kenya taxes non-residents and cross-border activity: permanent establishments, withholding as final tax, the significant economic presence tax, the digital asset tax, transfer pricing, the interest cap, deemed interest, treaties and the minimum top-up tax.

IT 12

Retirement benefits, pensions and exempt income

How contributions to and benefits from NSSF and registered pension, provident and individual retirement schemes are taxed after the 2024 and 2025 changes, and the incomes the First Schedule exempts.

VAT 1

VAT: scope, registration and rates

The VAT Act 2013: what a taxable supply is, who must register at the KES 5 million threshold, the 16% standard rate, zero-rating and exemption, and how the three categories differ for the supplier.

VAT 2

VAT: taxable value, time of supply, input tax and computation

How the VAT payable for a month is computed: the value on which output tax is charged, when the tax point arises, which input tax is deductible and which is blocked, apportionment for mixed suppliers, adjustments and bad debts.

VAT 3

VAT: imported services, the digital marketplace, withholding VAT, refunds and eTIMS

The reverse charge on imported services, the simplified regime for non-resident digital suppliers, withholding VAT at 2% by appointed agents, the refund rules, and the electronic tax invoice system every business must use.

IND 1

Excise duty

The Excise Duty Act 2015: excisable goods and services, licensing and excise stamps, specific and ad valorem rates in force after the Finance Act 2026, the excise on airtime, money transfer, betting and digital services, and how the duty is computed and paid.

IND 2

Customs duty and the East African Community Customs Management Act

How imports are taxed under the EACCMA 2004 and the EAC Common External Tariff: customs valuation, the 0/10/25/35 bands, rules of origin, the import tax stack with IDF, RDL, excise and VAT, customs procedures, bonded warehousing, exemptions and offences.

IND 3

Miscellaneous fees and levies, and stamp duty

The Miscellaneous Fees and Levies Act 2016 (import declaration fee, railway development levy, export levy, export and investment promotion levy) and the Stamp Duty Act: what each charges, at what rate, and how they are paid.

TPA 1

Registration, records, returns and assessments

The Tax Procedures Act 2015 on getting into and staying in the system: PIN registration, tax agents, record keeping, the return calendar for every tax, and the kinds of assessment the Commissioner may raise and when.

TPA 2

Payment, penalties, interest and enforcement

How tax is paid and what it costs to pay late: the late payment penalty and interest, the tax shortfall and avoidance penalties, the Commissioner's recovery powers (agency notices, distress, security on property, departure prohibition), waivers and the 2026 amnesty.

TPA 3

Objections, appeals and dispute resolution

How a taxpayer challenges an assessment or decision: the 30-day objection, the Commissioner's 60 days, the Tax Appeals Tribunal, the High Court and Court of Appeal, alternative dispute resolution, and the rules on stays, evidence and costs.

LEV 1

NSSF contributions

The NSSF Act 2013's two-tier contribution: 6% from the employee and 6% from the employer on pensionable pay up to the upper earnings limit of KES 108,000 from February 2026, the Tier II opt-out, the tax treatment and the employer's obligations.

LEV 2

SHIF, the Affordable Housing Levy and other employer levies

The Social Health Insurance Fund contribution at 2.75%, the Affordable Housing Levy at 1.5% each from employee and employer, and the NITA, tourism and other levies an employer accounts for, with their tax treatment, deadlines and penalties.