Updated 15 November 2026
The Kenya-UK tax treaty is the 1973 agreement, amended in 1976, that splits taxing rights between Kenya and the United Kingdom and caps how much tax each country can charge on some of the same income. It is still in force. For a Kenyan living in the UK, or a UK resident with Kenya income, the official text sets a 15% cap on Kenya tax on dividends and interest, a 15% cap on royalties, a 12.5% cap on management fees, and a credit in one country for tax paid in the other.
Checked on 12 November 2026 against the full text of the 1973 UK-Kenya Double Taxation Agreement as amended by the 1976 Protocol on GOV.UK (HMRC says it entered into force on 30 September 1977), the National Treasury list of double taxation agreements (which lists the UK agreement as in force, signed 31 July 1973), section 2 and the Third Schedule of the Income Tax Act (Cap. 470), as at 1 July 2026, and KRA’s Treaties and International Policy page on tax residence certificates. This is a reading of those official texts, not personal tax advice. Confirm your position with a qualified adviser and on the KRA and HMRC pages before you file.
On this page
In this guide
Is the Kenya-UK tax treaty still in force?
Yes. HMRC publishes the consolidated text and says the Kenya-UK tax treaty entered into force on 30 September 1977, effective in the UK from 6 April 1976 for income tax and capital gains tax and from 1 April 1976 for corporation tax, and in Kenya from the 1976 year of income. Kenya’s National Treasury lists the Kenya-UK tax treaty as in force; its table gives an entry-into-force date of 30 July 1977. Both official sources treat it as current. It covers UK income tax, corporation tax and capital gains tax, and Kenya income tax, plus later taxes that are identical or substantially similar.
Who is a Kenya tax resident
The Kenya-UK tax treaty first uses each country’s own law to decide who is a resident. Kenya’s test is in section 2 of the Income Tax Act. An individual is resident in Kenya for a year of income (1 January to 31 December) if:
- they have a permanent home in Kenya and were present in Kenya for any period in that year; or
- they have no permanent home in Kenya, but were present for 183 days or more in that year; or
- they were present in Kenya in that year and in each of the two preceding years for periods averaging more than 122 days in each year.
KRA uses the same section 2 test when it issues a tax residence certificate, which you may need in order to claim treaty rates. The application and the documents KRA asks for are set out on its Treaties and International Policy page; processing is stated there as 15 working days. A person who is not Kenya-resident is still taxed on income that accrued in or was derived from Kenya. Our guide to how to get a KRA PIN covers registration if you have Kenya income to declare.
The treaty tie-breaker if both countries claim you
If you are a resident of both Kenya and the UK under their domestic laws, Article 4 of the Kenya-UK tax treaty applies a fixed sequence. You are treated as a resident only of the state where you have a permanent home; if that is both states, the one with which your personal and economic relations are closest (your centre of vital interests); if that cannot be determined, the state of your habitual abode; then nationality; and if those still conflict, the competent authorities settle it by mutual agreement. For a company, the tie-breaker is the place of effective management.
Treaty rate caps on Kenya income
Kenya’s domestic non-resident rates in paragraph 3 of the Third Schedule can be higher than the treaty caps. Where the Kenya-UK tax treaty applies and the UK resident is subject to UK tax on the income, Kenya’s charge “shall not exceed” the treaty figure. The caps in the official Kenya-UK tax treaty text, set against the Act as at 1 July 2026, are:
| Income | Treaty article | Kenya tax shall not exceed | Domestic non-resident rate |
|---|---|---|---|
| Dividends paid by a Kenya-resident company | Article 11(4) | 15% of the gross amount | 15% |
| Interest | Article 12(2) | 15% of the gross amount | 15% on ordinary interest (25% on some bearer instruments) |
| Royalties | Article 13(2) | 15% of the gross amount | 20% |
| Management fees | Article 14(2) | 12.5% of the gross amount | 20% |
On dividends and ordinary interest, the treaty cap matches the current domestic non-resident rate, so the agreement does not cut the rate further. On royalties and management fees it does: 15% and 12.5% instead of 20%. To use the lower rate you typically need to show the payer, and KRA, that you are a UK resident subject to UK tax on that income. That is where a tax residence certificate comes in.
Employment, pensions, property and capital gains
Salaries are dealt with in Article 17. Pay for a job exercised in one state may be taxed there. A resident of one state who works in the other is taxed only in the first state if three conditions are all met: they are present in the work state for no more than 183 days in the fiscal year, the employer is not a resident of the work state, and the pay is not borne by a permanent establishment or fixed base the employer has there.
Under Article 20, a pension or annuity from sources in one state, paid to a resident of the other, may be taxed in the source state, but if the individual is subject to tax on it in the residence state, the source-state tax shall not exceed the lower of 5% of the pension or annuity, or the tax charged on it in the residence state. Government-service pensions may be taxed in the paying state. Kenya’s domestic non-resident rate on a pension or retirement annuity is also 5%.
Income from immovable property may be taxed in the state where the property sits (Article 7). Capital gains from selling immovable property may also be taxed in that state (Article 15). Kenya’s domestic capital gains tax is 15% and is a final tax, under paragraph 14 of the Third Schedule. See our guide to capital gains tax in Kenya and to rental income tax on iTax if you let or sell Kenya property from the UK.
How double taxation is relieved
Article 26 is the Kenya-UK tax treaty relief article. Subject to UK law on foreign tax credit, Kenya tax payable on Kenya-source profits, income or chargeable gains is allowed as a credit against UK tax on the same sums. For a dividend, the credit rules in Article 26(1) distinguish ordinary shareholders from a UK-resident company that controls at least 10% of the voting power. Where a Kenya resident has UK-source income that may be taxed in both states, Kenya shall allow a deduction from Kenya tax equal to the tax paid in the UK, not exceeding the Kenya tax that is appropriate to that UK income.
The Kenya-UK tax treaty does not remove your duty to file where you are required to. It changes the rate and the credit. If you also invest from abroad, our guide to investing in Kenya from abroad covers the investment channels; the treaty is about how the return is taxed.
Taken together, the Kenya-UK tax treaty is still the agreement that matters for a Kenya-UK tax treaty claim: residency under Kenya law and the Article 4 tie-breaker, the Kenya-UK tax treaty caps in Articles 11 to 14, and the Article 26 credit. Re-read the official Kenya-UK tax treaty text on GOV.UK before you file.
Frequently asked questions
Does the Kenya-UK tax treaty stop Kenya taxing my salary in the UK?
Not by itself. The treaty first looks at where the employment is exercised and at the 183-day rule in Article 17. A Kenya salary paid to a UK resident can still be taxable in Kenya if the work is done in Kenya and the Article 17(2) conditions are not met.
Is the 15% dividend cap lower than Kenya’s ordinary non-resident rate?
Not at the moment. Paragraph 3 of the Third Schedule, as at 1 July 2026, already sets the non-resident dividend rate at 15%, which is the same as Article 11(4). The cap still matters if the domestic rate changes, and you still need to meet the treaty conditions.
How do I prove I am a UK resident for the Kenya-UK tax treaty?
KRA issues a Kenyan tax residence certificate under the process on its Treaties page, which is the document Kenya residents use to claim treaty benefits abroad. For the other direction, UK residents usually need HMRC evidence of UK residence to present to a Kenyan payer or to KRA. Follow the official application steps on each authority’s site.
What if I am a resident of both countries?
Use the Article 4 tie-breaker: permanent home, then centre of vital interests, then habitual abode, then nationality, then mutual agreement. Do not assume your passport alone decides it.
Related: How to get a KRA PIN online
Related: Capital gains tax in Kenya 2026
Related: How to open a Kenyan bank account from abroad
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