Major Taxes Businesses Are Supposed to File and Pay in Kenya

Key Business Taxes in Kenya

Businesses in Kenya are required to file a number of taxes, including:

• Corporate income tax (CIT) — levied on the income of legal entities, including companies, partnerships, and trusts. The rate of CIT for resident companies is 30%.
• Pay As You Earn (PAYE) — deducted from employees' salaries and paid to the government by their employers. The rate varies depending on the employee's income.
• Value Added Tax (VAT) — levied on goods and services at every stage of the supply chain. The standard rate of VAT in Kenya is 16%.
• Excise duty — levied on goods such as alcohol, tobacco, and fuel; rates vary depending on the good.

Filing via iTax

Businesses are required to file their taxes online via the iTax system. Key deadlines:

• CIT — 30th June of the following year after the end of the accounting period.
• PAYE — 15th of the month following the end of the tax month.
• VAT — 20th of the month following the end of the tax period.
• Excise duty — 15th of the month following the end of the tax period.

Penalties for Late Filing

A business that fails to file on time may face:

• Interest on the tax owed;
• Penalties for late payment;
• Enforcement action, such as a tax audit or tax investigation.

Businesses should take steps to ensure they file their taxes on time and avoid penalties.