Corporation tax rate for a resident company has been reduced to Ksh 5 for each KShs 20. The rate has been reduced to 25%. The rate is applicable for the year of income 2020 and each subsequent year of income. This rate is also applicable to a resident insurance company which relates to its life insurance business. The previous rate was 0.4. The lower corporation rates granted for listing in the securities exchange has been repealed.
Corporation tax rate for a non-resident company having a permanent establishment in Kenya remains KShs 7.5 for each KShs 20, that is 37.5%.
Note, in respect of a company engaged in business under a special operating framework arrangement with the Government, the rate of tax specified in the Agreement will
continue to apply for the unexpired period as provided under the Agreement.
Also, Note, that depending on type of business, whether a company is listed or not, whether operating under EPZ and SEZ, different rates of taxes and exemptions are granted. Talk to us for a tax advice best suited for your business. Provisions relating to Capital Allowances are highlighted below.