Key takeaways
- Most monthly taxes in Kenya (VAT, excise, turnover tax, rental income tax) are due by the 20th of the following month.
- PAYE, SHIF, Housing Levy and NSSF deductions are due by the 9th of the following month.
- Annual income tax returns for individuals are due by 30 June every year.
- Late filing and late payment attract separate penalties plus 1% interest per month, so file on time even if you cannot pay in full.
In this guide
Whether you are employed, run a small shop or manage a growing company, knowing the types of taxes in Kenya and their deadlines saves you from penalties and stress with the Kenya Revenue Authority (KRA). Here is a plain-language guide to the main taxes and when each is due.
1. Income tax
Charged on income earned in or from Kenya. It comes in several forms:
- PAYE (Pay As You Earn): deducted by employers from salaries and remitted by the 9th of the following month.
- Individual income tax: every PIN holder files an annual return on iTax by 30 June, even if it is a nil return.
- Corporation tax: 30% of taxable profit for resident companies; the return is due by the end of the 6th month after the financial year-end.
- Instalment tax: paid in four parts by the 20th of the 4th, 6th, 9th and 12th month of your accounting year if your tax liability exceeds KES 40,000.
2. Value Added Tax (VAT)
Charged at 16% on most goods and services. Registration is mandatory once taxable sales reach KES 5 million in 12 months. VAT returns and payments are due by the 20th of the following month, and invoices must go through KRA eTIMS.
3. Turnover tax (TOT)
A simplified tax for small businesses with annual turnover between KES 1 million and KES 25 million, at 1.5% of gross sales. It is filed and paid monthly by the 20th of the following month.
4. Withholding tax
Deducted at source by the payer on items like professional fees, rent, dividends, interest and commissions. It must be remitted within 5 working days of making the deduction.
5. Monthly rental income tax
Resident landlords earning between KES 288,000 and KES 15 million a year in residential rent pay 7.5% of gross rent, due by the 20th of the following month.
6. Excise duty
Charged on specific goods and services such as alcohol, tobacco, fuel, airtime, betting and some financial services. Returns are due by the 20th of the following month.
7. Customs and import duty
Paid on imported goods at the point of entry, alongside import VAT, the Import Declaration Fee and the Railway Development Levy.
8. Statutory deductions on payroll
- Social Health Insurance Fund (SHIF): 2.75% of gross pay, due by the 9th.
- Affordable Housing Levy: 1.5% from the employee and 1.5% from the employer, due by the 9th working day.
- NSSF: 6% from the employee and 6% from the employer within the set earnings limits, due by the 9th.
9. Capital gains tax
Charged at 15% on the gain from selling property or shares, payable on or before transfer of the asset.
Tips to never miss a deadline
- Set calendar reminders for the 9th, 20th and 30 June.
- Keep receipts and invoices organised every month, not at year-end.
- Use eTIMS-ready POS software so your sales records match KRA’s.
- File on time even if you cannot pay in full, then apply for a payment plan.
Next, learn how to compute your taxes in Kenya step by step.
Kenya tax calendar at a glance
| Tax | Who pays | Deadline |
|---|---|---|
| PAYE | Employers (for employees) | 9th of the following month |
| SHIF (2.75%) | Employees via employer | 9th of the following month |
| Affordable Housing Levy (1.5% + 1.5%) | Employee and employer | 9th working day of the following month |
| NSSF | Employee and employer | 9th of the following month |
| Withholding tax | Payer of qualifying income | 5th working day after deduction |
| VAT (16%) | Businesses registered for VAT | 20th of the following month |
| Excise duty | Manufacturers / importers of excisable goods | 20th of the following month |
| Turnover tax | Small businesses (KES 1M–25M turnover) | 20th of the following month |
| Monthly rental income tax | Residential landlords | 20th of the following month |
| Instalment tax | Companies and individuals with tax above KES 40,000 | 20th of the 4th, 6th, 9th and 12th month |
| Individual income tax return | Every KRA PIN holder | 30 June |
| Corporation tax return | Companies | End of 6th month after year-end |
Rates and deadlines change with each Finance Act. Always confirm current figures on the KRA website or with a tax advisor.
Frequently asked questions
What happens if I file my KRA returns late?
Late filing attracts a penalty (for individuals, KES 2,000 or 5% of tax due, whichever is higher), and unpaid tax attracts a 5% late payment penalty plus 1% interest per month.
Do I need to file a return if I had no income?
Yes. Every PIN holder files an annual return; if you had no income, file a nil return on iTax by 30 June.
What if a deadline falls on a weekend or holiday?
File and pay by the last working day before the deadline to stay safe.
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