Use this KRA withholding tax calculator to get instant, accurate results:
How to use:
- Select your payment type from the dropdown
- Enter the gross payment amount
- Choose recipient type (resident/non-resident)
- View results: WHT amount, net payment, deadline, and compliance requirements
Why This Withholding Tax Calculator Matters #
You just paid a consultant KES 100,000. Did you remember to withhold the tax? If not, KRA considers you liable for that tax as if you earned the income yourself.
Withholding tax in Kenya catches most business owners off guard. You think you’re just paying for a service, but you’re actually a tax collector for KRA. Miss the deduction and you pay double – the full amount to your supplier and the tax to KRA.
Whether you’re paying a consultant KES 50,000 or a non-resident supplier KES 5 million, this KRA withholding tax calculator shows you exactly what to deduct and when.
What Is Withholding Tax in Kenya? #
Withholding tax is tax you deduct before paying certain service providers. You’re not paying extra – you’re collecting tax on behalf of the government and sending it to KRA through iTax.
Who pays withholding tax in Kenya? The person making the payment (you, the business owner) withholds the tax and remits it to KRA. The person receiving payment gets the net amount after tax is withheld.
According to KRA regulations, you must deduct tax at source and remit by the 20th of the following month. Skip this step and you face a 5% penalty plus 1% monthly interest.
Is it final or advance tax? For Kenyan residents, withholding tax is an advance payment – they claim it back when filing annual returns. For non-residents with no permanent establishment in Kenya, it’s final tax.
How to Calculate Withholding Tax in Kenya: Rate Guide (2025) #
Use the withholding tax calculator above or calculate manually using these official KRA rates:
Complete Withholding Tax Rates Table #
| Type of Income | Resident | Non-Resident |
|---|---|---|
| Professional & Business Services | ||
| Management fees | 5% | 20% |
| Professional fees | 5% | 20% |
| Training fees (inclusive of incidental costs) | 5% | 20% |
| Consultancy and agency fees | 5% | 20% (EAC citizens: 15%) |
| Contractual fees | 3% | 20% |
| Artists and entertainers | – | 20% |
| Sales promotion, marketing and advertising services | 5% | 20% |
| Telecommunication services/Message transmission | – | 5% |
| Natural Resource Income | 5% | 20% |
| Property & Rental Income | ||
| Rent – buildings (immovable) | 10% | 30% |
| Rent – others (except aircraft) | N/A | 15% |
| Equipment (movable) leasing | N/A | 5% |
| Withholding on rental income tax by tax agents | 7.5% | N/A |
| Investment Income | ||
| Dividends (general rate) | 10% | 15% |
| Dividends – qualifying resident | 5% | – |
| Dividends – EAC citizens | 5% | – |
| Dividends – resident companies (>12.5% shareholding) | Exempt | – |
| Interest (Bank) | 15% | 15% |
| Interest (Housing Bond HBI) | 10% | 15% |
| Interest on government bearer bonds (2+ years) | 15% | 15% |
| Interest on bearer bonds issued outside Kenya | 7.5% | 7.5% |
| Other bearer bonds interest | 25% | 25% |
| Bearer bonds with maturity of 10 years or more | 10% | – |
| Royalties or natural resource income | 5% | 20% |
| Gains from financial derivatives | N/A | 15% |
| Commissions | ||
| Insurance Commissions – brokers | 5% | 20% |
| Insurance Commissions – others | 10% | 20% |
| Digital Economy | ||
| Digital content monetization | 5% | 20% |
| Other Income | ||
| Winnings (betting, gaming, prize competition, gambling) | 20% | 20% |
| Pensions/provident schemes (withdrawal) | 10-30% | 5% |
Note: Rates effective as of 2025. Digital content monetization WHT was introduced in Finance Act 2023 and applies at 5% for residents and 20% for non-residents. Always verify with KRA for the latest rates.
Professional and Business Services #
Management/Professional Fees: 5% (Resident) | 20% (Non-Resident)
- Legal, accounting, auditing, consulting, architecture, engineering, medical services
- Example: Pay lawyer KES 100,000, withhold KES 5,000 (resident) or KES 20,000 (non-resident)
Consultancy/Training/Agency: 5% (Resident) | 20% (Non-Resident) | 15% (EAC)
- Business consultancy, training services, agency fees
- Example: Pay EAC consultant KES 50,000, withhold KES 7,500
Contractual/Construction: 3% (Resident) | 20% (Non-Resident)
- Construction, installation, repair, maintenance contracts
Sales Promotion/Marketing/Advertising: 5% (Resident) | 20% (Non-Resident)
- Marketing campaigns, advertising agency services
Natural Resource Income: 5% (Resident) | 20% (Non-Resident)
- Mining royalties, resource extraction payments
Artists and Entertainers: 20% (Non-Resident only)
- Performance fees for non-resident artists
Telecommunication Services: 5% (Non-Resident only)
- International telecom and message transmission services
Property Income #
Rent – Buildings: 10% (Resident) | 30% (Non-Resident)
- Residential and commercial property rentals
- Example: Pay KES 150,000 rent – withhold KES 15,000 (resident) or KES 45,000 (non-resident)
Rental via Tax Agents: 7.5% (Resident only)
- Rental income collected by property management agents (effective January 2024)
Rent – Other Property: 15% (Non-Resident only)
- Equipment and machinery rental (except aircraft)
Equipment Leasing: 5% (Non-Resident only)
- Movable equipment and machinery leasing
Investment Income #
Dividends:
- General: 10% (Resident) | 15% (Non-Resident)
- Qualifying resident/EAC: 5%
- Resident companies (12.5%+ shareholding): Exempt
Interest:
- Bank: 15% (both)
- Housing bonds: 10% (Resident) | 15% (Non-Resident)
- Government bearer bonds (2+ years): 15% (both)
- Bearer bonds (outside Kenya): 7.5% (both)
- Other bearer bonds: 25% (both)
- Long-term bearer bonds (10+ years): 10% (Resident)
Royalties: 5% (Resident) | 20% (Non-Resident)
- Patents, trademarks, copyrights, licensing
Financial Derivatives: 15% (Non-Resident only)
- Profits from financial derivative transactions
Commissions and Digital Income #
Commissions: 5% (Resident) | 20% (Non-Resident)
- Sales commissions to agents
Insurance Commissions:
- Brokers: 5% (Resident) | 20% (Non-Resident)
- Others: 10% (Resident) | 20% (Non-Resident)
Digital Content Monetization: 5% (Resident) | 20% (Non-Resident)
- YouTube, TikTok, Instagram, social media earnings
- Introduced Finance Act 2023, effective July 2023
Other Income #
Winnings: 20% (both)
- Betting, lottery, prize competitions, gambling
Pensions/Provident Withdrawals: 10-30% (Resident) | 5% (Non-Resident)
- Retirement fund withdrawals
PAYE (Employment): Progressive 10-35%
- Employee salaries use PAYE, not withholding tax
Real Examples: How to Calculate Withholding Tax in Kenya #
Example 1: Hiring a Local Consultant #
You hired a Kenyan marketing consultant for KES 200,000.
- WHT rate: 5%
- Tax to withhold: KES 200,000 × 5% = KES 10,000
- Net payment: KES 190,000
- Remit by 20th of following month
Consultant claims KES 10,000 on annual return as tax credit.
Example 2: Paying Commercial Rent #
Your shop rent is KES 120,000 per month.
Resident landlord:
- WHT rate: 10%
- Withhold: KES 12,000
- Net: KES 108,000
Non-resident landlord:
- WHT rate: 30%
- Withhold: KES 36,000
- Net: KES 84,000
Example 3: EAC Consultant (Special Rate) #
You hired a consultant from Uganda for KES 300,000.
- WHT rate: 15% (reduced EAC rate)
- Withhold: KES 45,000
- Net: KES 255,000
- Requires EAC residency proof
Without documentation: 20% standard rate = KES 60,000
Example 4: Digital Content Creator #
YouTube paid you KES 100,000 for ad revenue.
- WHT rate: 5% (resident)
- Withheld: KES 5,000
- You receive: KES 95,000
- Claim KES 5,000 on annual return
Applies to YouTube, TikTok, Instagram, and all digital platforms.
Example 5: Company Dividends #
Paying KES 500,000 in dividends:
Resident individuals: 5% = KES 25,000 withheld Non-resident: 15% = KES 75,000 withheld Parent company (12.5%+ shares): Exempt
Common Withholding Tax Calculation Mistakes That Cost Money #
Mistake 1: Forgetting to Withhold #
You paid the full KES 100,000 to a consultant. No withholding. According to KRA rules, you’re now liable for that KES 5,000 as if you earned the income yourself, plus a 5% penalty (KES 250) and 1% monthly interest.
Mistake 2: Using the Wrong Rate #
You used 5% resident rate for a non-resident consultant when it should be 20%. You withheld KES 5,000 instead of KES 20,000. KRA wants the remaining KES 15,000 from you, plus penalties. Your withholding tax calculator must distinguish between payment types.
Mistake 3: Missing the 20th Deadline #
You withheld the tax but waited until month-end to remit. KRA requires remittance by the 20th of the following month. Late remittance carries a 5% penalty plus 1% monthly interest on the amount due.
Mistake 4: Not Issuing the WHT Certificate #
You remitted to KRA but didn’t generate the withholding tax certificate on iTax. The payee can’t claim their credit on annual returns. They call you angry, and you spend hours fixing it. Always generate certificates through iTax immediately after payment.
Mistake 5: Wrong Payment Type Selection #
You classified construction work as professional fees (5%) instead of contractual/construction fees (3%). You over-withheld KES 2,000 on a KES 100,000 payment. The contractor complains, and you have to process a refund through KRA – months of hassle.
Mistake 6: Confusing WHT with VAT #
You added 16% VAT then withheld 5% WHT from the base amount only. Wrong calculation. WHT applies to the VAT-inclusive amount. A KES 100,000 service becomes:
- Base: KES 100,000
- VAT (16%): KES 16,000
- Gross: KES 116,000
- WHT (5%): KES 5,800 (from KES 116,000, not KES 100,000)
- Net payment: KES 110,200
Use your VAT calculator first, then the withholding tax calculator on the gross amount.
Mistake 7: Ignoring the KES 24,000 Threshold #
You paid KES 25,000 to a consultant and thought it was too small to worry about. Wrong. Any payment above KES 24,000 requires the recipient to have a KRA PIN, and you must withhold tax. Use the withholding tax calculator even for payments just above the threshold.
Mistake 8: Not Checking Double Tax Agreements #
You withheld 20% from a German company when the Germany-Kenya DTA reduces the rate to 10% for certain services. You over-withheld KES 10,000 on a KES 100,000 payment. The recipient demands proper withholding, and you have to apply for a refund through complex KRA procedures.
When Withholding Tax Does NOT Apply #
Your withholding tax calculator shouldn’t be used for these payments, which are exempt according to KRA regulations:
Payments under KES 24,000: Local management and professional fees below this threshold per month don’t require recipient KRA PIN or withholding
Dividends to parent companies: When a resident company receives dividends from a subsidiary where it controls 12.5%+ voting power
Interest to financial institutions: Payments to licensed banks and insurance companies
Tax-exempt organizations: Registered charities and tax-exempt bodies with valid exemption certificates
Government securities interest: Interest from treasury bills, bonds, and certain infrastructure bonds
Employee salaries: These use PAYE, not withholding tax – different calculation system
Export commissions: Certain flower, fruit, and vegetable export marketing fees
Special Economic Zone payments: Certain payments in the first 10 years
How to File Withholding Tax: Step-by-Step Process #
Many ask “how to file withholding tax” – here’s the complete process after using your withholding tax calculator:
Step 1: Calculate Using the Withholding Tax Calculator
- Select payment type from the dropdown
- Enter gross amount
- Get exact withholding amount
Step 2: Pay the Supplier (Net Amount)
- Pay only the net amount (gross minus WHT)
- Keep records of payment date and amount
- Inform supplier about WHT deduction
Step 3: Remit WHT to KRA (By 20th of Following Month)
- Log into iTax portal
- Go to Payments > Withholding Tax
- Select payment type and enter amount
- Generate payment slip
- Pay via M-Pesa (Paybill 572572), bank, or online banking
Step 4: Generate WHT Certificate
- In iTax, go to Returns > Withholding Tax
- File monthly return showing all payments and WHT
- System generates certificates automatically
- Certificates email to recipients’ registered iTax email
Step 5: Keep Records (5 Years)
- Payment invoices
- WHT calculations
- Payment confirmations
- Filed returns
- Issued certificates
Double Taxation Agreements and Your Withholding Tax Calculation #
Kenya has tax treaties with multiple countries that may reduce withholding tax rates for non-residents. According to PwC’s Kenya tax summary, treaty rates can be significantly lower than standard rates.
Countries with Kenya Tax Treaties:
- United Kingdom – Professional fees may reduce from 20% to 12.5%
- Germany – Various services at reduced rates
- Canada – Specific service exemptions
- Denmark, Norway, Sweden – Reduced rates for certain income
- India – Lower withholding on technical services
- France, South Africa, Zambia – Multiple rate reductions
How to Apply Treaty Rates:
- Recipient must have tax residency certificate from their country
- Recipient applies for treaty relief through KRA
- You withhold at treaty rate only after KRA approval
- Without approval, use standard rates in the withholding tax calculator
Penalties for Getting Withholding Tax Wrong #
Don’t ignore your withholding tax calculator. The penalties are severe:
Failure to Withhold: You’re liable for the full tax amount as if you earned the income, plus penalties
Late Remittance: 5% of tax due penalty plus 1% interest per month on unpaid amounts
Failure to File Returns: 5% of tax due or KES 10,000 (whichever is higher)
Not Issuing Certificates: Additional penalties and recipient complaints
Example: You owed KES 50,000 in withholding tax. You paid 25 days late (5 days after the 20th deadline).
- Base tax due: KES 50,000
- Late penalty (5%): KES 2,500
- Interest (1% for 1 month): KES 500
- Total cost: KES 53,000 (you pay KES 3,000 in penalties)
Your withholding tax calculator might show KES 50,000, but delay costs you KES 3,000 extra.
The Bottom Line: Withholding Tax Calculation in Kenya #
Understanding what is withholding tax and how to calculate withholding tax in Kenya isn’t optional. It’s not something you do when you remember. Every payment for professional fees, rent, dividends, interest, royalties, commissions, or contractual work requires withholding tax.
Your job isn’t just to pay suppliers. According to Kenya’s tax system, you’re a tax collector for KRA. Get it wrong and you pay twice – once to your supplier and again to KRA in penalties.
Who pays withholding tax in Kenya? You do – by deducting it before paying your suppliers. Then you remit it to KRA by the 20th of the following month and issue WHT certificates.
Stop guessing at rates. Stop forgetting to withhold. Stop missing the 20th deadline.
Use the KRA withholding tax calculator at the top of this page. Select your payment type, enter the amount, and get instant results showing:
- Exact WHT amount to withhold
- Net payment to supplier
- Applicable rate (3%, 5%, 10%, 15%, or 20%)
- Remittance deadline
- Certificate requirements
Pay correctly. Remit on time. Generate certificates. Stay compliant.
Because the 5% penalty plus 1% monthly interest for late payment isn’t a tax deduction. It’s just money you lose for not knowing how to calculate withholding tax in Kenya correctly.
Related Resources for Kenyan Business Owners #
Internal Resources: #
- VAT Calculator Kenya – Calculate VAT before withholding tax (WHT applies to VAT-inclusive amount)
- Profit Margin Calculator – Factor WHT deductions into your pricing strategy
- PAYE Calculator – Employee tax calculations (different from withholding tax)
Official & Research Resources: #
- Kenya Revenue Authority – Withholding Tax – Official KRA guidelines, rates, and regulations
- KRA iTax Portal – File returns, make payments, and generate certificates
- KRA Withholding Tax FAQs – Common questions answered by KRA
- PwC Kenya Tax Summaries – Professional tax analysis and treaty rates
- Double Taxation Agreements – Full list of Kenya’s tax treaties and reduced rates
Sources & References: This withholding tax calculator guide uses official data from the Kenya Revenue Authority (KRA), professional tax analysis from PwC Kenya, and current 2025 tax regulations. All rates and rules are cited with links to original sources for verification.
Last Updated: October 2025