Withholding Tax Calculator Kenya
How much withholding tax do I deduct from this consultant's invoice?
Withholding tax is worked out on the amount before VAT.
Used for the date to remit to KRA.
Earlier payments, gross-up and rate override
Excluding VAT. Tax applies once the month's total reaches KES 24,000.
Grosses up the fee so the supplier nets the agreed amount.
For a double tax treaty rate, or 0% with a KRA exemption certificate.
Withholding tax
5% · resident- Remit by
- Wed, 4 Nov 2026
- Final tax
- No, credit
- Tax to remit
- 5,000.00
Resident withholding tax isn't final: the supplier claims it against their income tax. Employees go through PAYE, not withholding tax, so don't pay staff as consultants.
How to pay on iTax
- Log in to iTax and open Payments, then Payment registration.
- Choose Withholding Tax (or VAT withholding) and enter the supplier's PIN, invoice and amount.
- Generate the payment slip (PRN) and pay it by bank or M-Pesa by Wed, 4 Nov 2026.
- iTax issues the withholding certificate to the supplier.
Payment voucher summary
Withholding tax payment voucher Payment type: Consultancy fees (resident) Amount excluding VAT: KES 100,000.00 WHT rate: 5% (s.2 definition of management or professional fee; para 5(f)(i)) Withholding tax: KES 5,000.00 Net payable to supplier: KES 95,000.00 Remit to KRA by: Wed, 4 Nov 2026
How it's worked out
- Remove VAT. If the invoice includes 16% VAT, divide by 1.16. Withholding tax is charged on the VAT-exclusive amount.
- Find the rate for the payment type and whether the supplier is resident.
- Check the threshold. For residents, professional, management, consultancy, agency, training and contractual fees are only taxed once payments to the same supplier reach KES 24,000 in a month.
- Gross up if needed. If the agreed amount is what the supplier should receive, divide by (1 − rate).
- Withhold base × rate. An appointed VAT withholding agent also withholds 2% of the VAT-exclusive value.
- Remit to KRA within 5 working days of the payment, skipping weekends and public holidays.
Withholding tax rates for 2026
| Payment | Resident | Non-resident |
|---|---|---|
| Management or professional fees | 5% | 20% |
| Consultancy fees | 5% | 20% |
| Agency fees or commission (not insurance) | 5% | 20% |
| Training fees | 5% | 20% |
| Contractual fees (building, civil or engineering works) | 3% | 20% |
| Insurance commission to brokers | 5% | – |
| Insurance commission to others | 10% | – |
| Rent (land and buildings) | 7.5% | 30% |
| Rent (other property, e.g. equipment) | – | 15% |
| Sales promotion, marketing and advertising | 5% | 20% |
| Royalty or natural resource income | 5% | 20% |
| Digital content monetisation | 5% | 20% |
| Digital marketplace payments | 5% | 20% |
| Supply of goods to a public entity | 0.5% | 5% |
| Entertainment or sports performance | – | 20% |
| Insurance premiums | – | 5% |
| Scrap metal | 1.5% | 1.5% |
| Betting and gaming winnings | 20% | 20% |
Resident rent is withheld only by appointed agents. Non-resident consultancy fees to EAC citizens are 15%. Scrap metal rates are from secondary sources on the Finance Act 2026. Resident withholding tax is credited against the supplier's income tax; non-resident withholding tax is final.
Questions people ask
What is the withholding tax rate on consultancy fees in Kenya?
5% for resident consultants when payments to them total KES 24,000 or more in a month, and 20% for non-residents. Consultants who are citizens of EAC partner states pay 15%.
Is withholding tax calculated before or after VAT?
On the amount excluding VAT. For a KES 116,000 VAT-inclusive invoice, withholding tax at 5% is KES 5,000 (5% of 100,000).
When must withholding tax be paid to KRA?
Within 5 working days after the deduction, via iTax. The supplier then gets a withholding tax certificate.
What is the rate for building and construction contractors?
3% of the gross (VAT-exclusive) contractual fee for residents, once the monthly total reaches KES 24,000. Non-resident contractors pay 20%.
Do I withhold tax on rent?
Only if KRA has appointed you a rental income withholding agent. Then withhold 7.5% of rent paid to resident landlords. Otherwise, landlords pay their own rental income tax.
Sources
Rates last checked 13 Sep 2026. Estimates only, not tax or legal advice.