Withholding Tax Calculator Kenya

📅 Last updated: 13 November 2026 • 🛡️ Rates checked: 20 October 2026 (Subject to KRA confirmation) • 🏛️ Sources: KRA, NSSF, SHA

In Short: Kenya Withholding Tax (WHT) Rates (2026)

Withholding Tax is deducted at source upon paying independent professionals, consultants, suppliers, or landlords. For resident individuals, standard rates include: Management & Professional fees (5%), Contractual services (3%), and Immovable property rent (7.5%). For non-residents, professional services are taxed at 20% and rent at 30%.

Understanding withholding tax is crucial for consultants, freelancers, and businesses in Kenya. Unlike employment income taxed via a PAYE calculator, payments to independent contractors are governed by Section 35 of the Income Tax Act.

Withholding tax calculator

Select your payment classification, indicate residency status, and enter the invoice amount to determine the tax withheld and net payment due.

Withholding Tax Tool

Payment Classification

Taxpayer Residency Status

Resident Person / Entity

Non-Resident

Gross Invoice Amount (KES)

Net Payment Due to Supplier

KES 95,000.00

Tax Withheld (Remitted to KRA): KES 5,000.00 (5.0%)

Applied Resident rate of 5.0% on Management & Professional. Notice: Withholding tax is remitted to KRA by the 20th of the following month.

Important Notice: This is Withholding Tax, not PAYE. If you are hiring full-time or casual staff, see our casual worker tax guide or our knowledge base on PAYE vs withholding tax.

Withholding tax rates in Kenya

KRA Withholding Tax Rates Summary (2026)
Payment Category	Resident Rate	Non-Resident Rate	Official Remittance Basis
Management & Professional Fees	5.0%	20.0%	Section 35 Income Tax Act
Contractual & Subcontracting	3.0%	20.0%	Section 35 Income Tax Act
Rental Income (Immovable)	7.5%	30.0%	Finance Act Provisions
Dividends	5.0%	15.0%	Qualifying distributions
Bank & Treasury Interest	15.0%	15.0%	Section 35 Income Tax Act
Royalties & Natural Resource	5.0%	20.0%	Intellectual property fees

Frequently Asked Questions

What is Withholding Tax (WHT) in Kenya?

Withholding Tax is an advance tax deducted at source by appointed withholding agents when paying for professional services, management fees, contracts, rent, royalties, dividends, or interest.

What is the withholding tax rate on management and professional fees?

The withholding tax rate for resident individuals and entities is 5%. For non-resident persons, the rate is 20% unless reduced by an international Double Taxation Agreement.

Is Withholding Tax the same as PAYE?

No. PAYE applies exclusively to employer-employee relationships for employment income. Withholding Tax applies to independent contractors, service providers, and business suppliers.

When must Withholding Tax be paid to KRA?

Withholding tax must be deducted at the point of invoice payment and remitted to the KRA via iTax by the 20th day of the subsequent month.

Can a resident service provider claim withholding tax back?

Yes. Withholding tax on professional and contractual fees is not a final tax for residents. When filing your annual tax return, you declare your total income and claim withholding tax certificates as a tax credit.