Kenya

Bordered by Tanzania, Uganda, South Sudan, Ethiopia and Somalia, you’ll find Kenya on the east coast of Africa. Nairobi is the capital city, the Kenya shilling (KES) is the official currency, with Swahili and English spoken as the two official languages.

Kenya’s GDP growth has hovered around 5% over the last ten years and it’s a key transport hub in East Africa. Kenya is also a significant financial centre. The new Constitution, introduced in 2010 brought with it a new economic and political governance system, which has had a positive effect on Kenya’s growth.

In a bid to further boost growth and employment, the government has introduced measures to enhance manufacturing, food security, nutrition, affordable housing provision. And it also aims to achieve a universal health system.

The Covid-19 pandemic has stalled Kenya’s growth plans for now, with supply and demand issues having a detrimental effect on the economy. The Government does expect further growth as we emerge from the pandemic, after seeing signs of a recovery once the economy reopened in the latter part of 2020.

Kenya is a member of the East African Community (EAC), the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA), and the Intergovernmental Authority on Development (IGAD).

Our local Tax Natives in Kenya can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing complex business deals, we’ll get you the advice you need. Just say the word and we can link you with a local expert who can answer all your questions.

THE HEADLINES

• The corporate income tax rate for companies resident in Kenya is 30%, while for those resident overseas it’s 37.5%
• The rate of personal income tax in Kenya is 30%
• The standard VAT rate is 16%