Updated 31 October 2026
Withholding tax for consultants in Kenya is 5% of the gross fee when the consultant is resident, 20% when non-resident, and 15% when the consultant is a citizen of an East African Community partner state. The client deducts it before paying you and remits it to KRA by the 20th of the following month. Payments to residents totalling KSh24,000 or less in a month are exempt, according to KRA’s withholding tax page.
Withholding tax rates for consultants and related fees (2026)
| Payment | Resident | Non-resident |
|---|---|---|
| Consultancy fees | 5% | 20% (15% for EAC citizens) |
| Management or professional fees | 5% | 20% |
| Training fees (incl. incidental costs) | 5% | 20% |
| Contractual fees (building, civil, engineering works) | 3% | 20% |
| Sales promotion, marketing and advertising | 5% | 20% |
| Digital content creators | 5% | 20% |
| Supply of goods to a public entity | 0.5% | 5% |
Who deducts withholding tax from a consultant?
Any person paying a consultancy, management, professional or training fee is the withholding agent, including companies, NGOs, government agencies and individuals running a business. The payer deducts the tax at the time of payment, remits it through iTax by the 20th day of the next month, and issues you a withholding tax certificate.
The KSh24,000 threshold
KRA exempts resident management, professional, training and contractual fees whose total value is KSh24,000 or less in a month. Once a client’s payments to you in a month go above that, the 5% applies to the full amount paid.
Worked example
A Nairobi-based consultant invoices a company KSh200,000 for a strategy project. The company deducts 5% (KSh10,000), pays the consultant KSh190,000 and remits KSh10,000 to KRA. If the consultant is VAT registered, VAT is charged on the invoice separately; withholding VAT rules for designated agents also apply.
Is 5% the final tax for resident consultants?
No. For residents, withholding tax on consultancy and professional fees is an advance tax. You declare the full fee as income in your annual return and claim the 5% already withheld as a credit. Non-resident withholding tax is final.
How to claim your withholding tax credit on iTax
- Ask each client for the withholding tax certificate for every payment.
- Log in to iTax and check that the certificates appear under your PIN.
- When filing your income tax return, enter your gross fees and claim the withheld amounts in the tax credits section.
- If a certificate is missing, ask the client to correct their return; KRA only credits what was remitted under your PIN.
Common mistakes
- Agreeing a “net” fee without stating whether it is before or after withholding tax.
- Not collecting certificates, then paying tax twice when filing.
- Assuming the 5% is final and not filing a return.
Creators paid through platforms face a similar 5% rule; see YouTube tax in Kenya. For gig and online workers, see tax on online income in Kenya. Suppliers to government can read how payments run through IFMIS and withholding tax.
FAQ
What is the withholding tax rate for consultants in Kenya?
5% for residents, 20% for non-residents and 15% for EAC citizens.
Is there a minimum amount for withholding tax?
Yes. Resident management, professional, training and contractual fees totalling KSh24,000 or less in a month are exempt.
When must withholding tax be remitted?
By the 20th day of the month after the payment.
Is withholding tax for consultants a final tax?
No for residents (it is credited against your annual tax); yes for non-residents.
Updated October 2026.
Related: Tax on Commission Income in Kenya 2026: Withholding Rates for Agents, Brokers and Sales Staff
Related: Banks' tax contribution hits record KSh205.6bn as withholding tax collections jump 29%
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