Updated 15 November 2026
Non-resident tax Kenya rates are set in paragraph 3 of the Third Schedule to the Income Tax Act. As at 1 July 2026, a non-resident is charged 15% on dividends, 15% on ordinary interest, 20% on royalties and on management, professional, training, consultancy, agency or contractual fees, 30% on rent for immovable property, and 5% on a pension or retirement annuity. A double taxation agreement can cap some of those rates. Kenya has no tax treaty with the United States on the National Treasury list, so a US person ordinarily faces the full domestic figures.
Checked on 12 November 2026 against paragraph 3 of the Third Schedule in the Income Tax Act (Cap. 470), legislation as at 1 July 2026 (the Kenya Law text notes that Act No. 19 of 2026 amendments had not all been applied in that consolidation), section 2 of the same Act on residency, and the National Treasury list of double taxation agreements. Rates can change by Finance Act. Confirm the current Third Schedule before you withhold or file. This is not personal tax advice.
On this page
In this guide
Who pays non-resident tax Kenya charges
Section 3 of the Income Tax Act charges tax on income that accrued in or was derived from Kenya, whether the person is resident or non-resident. “Resident” for an individual is defined in section 2: a permanent home in Kenya plus any presence in the year of income; or, with no permanent home, 183 days in the year; or presence in that year and in each of the two preceding years averaging more than 122 days. The year of income is the calendar year. If you fall outside that test, the non-resident tax Kenya rates in paragraph 3 of the Third Schedule apply to your Kenya-source income.
You still need a KRA PIN to deal with Kenyan tax administration. See how to get a KRA PIN. Residency for tax is not the same as a work permit or citizenship.
The official non-resident rates, as at 1 July 2026
These are the main non-resident tax Kenya heads in paragraph 3, “The non-resident tax rates shall be”. Figures are of the gross amount unless the Act says otherwise.
| Income | Non-resident rate |
|---|---|
| Management, professional, training, consultancy, agency or contractual fees | 20% (5% if paid by a Special Economic Zone enterprise, developer or operator; 15% consultancy fees for a citizen of an East African Community partner state) |
| Royalty or natural resource income | 20% (5% if paid by an SEZ enterprise, developer or operator) |
| Rent, premium or similar consideration for immovable property | 30% |
| Rent or similar consideration for property other than immovable property | 15% |
| Dividend | 15% |
| Interest, deemed interest, discount or original issue discount, including interest on a government bearer bond of at least two years | 15% |
| Interest on a bearer bond issued outside Kenya of at least two years | 7.5% |
| Interest on other bearer instruments | 25% |
| Interest paid by an SEZ enterprise, developer or operator | 5% |
| Pension or retirement annuity | 5% |
| Insurance or reinsurance premium | 5% |
| Gains from financial derivatives | 15% |
| Repatriated income under section 7B | 15% |
| Digital content monetisation, and income from a digital marketplace | 20% |
| Winnings | 20% |
Paragraph 3 has further heads, including shipping, message transmission, sales promotion and marketing, public-entity supplies and scrap metal. Read the Schedule itself for those. Special economic zone payments other than dividends to non-residents are also given a 10% rate in subparagraph (n), alongside the 5% figures above for specified payment types.
When a tax treaty cuts the rate
If Kenya has an in-force double taxation agreement with your country of residence, the treaty may say Kenya tax “shall not exceed” a lower figure. The Kenya-UK tax treaty, which we read in full from the official GOV.UK text, caps royalties at 15% and management fees at 12.5%, both below the 20% domestic rate; its 15% caps on dividends and ordinary interest match the current domestic rates. See Kenya-UK tax treaty: 5 residency and rate rules. Treasury lists in-force agreements with Canada, the UAE, Qatar, Germany, France and others; there is no United States agreement on that list. For Canada and the UAE, read the agreement documents on the Treasury page rather than assuming the UK caps apply.
The non-resident tax Kenya rates that matter most for investors are the 15% figures on dividends and interest. Every other non-resident tax Kenya head is in the table above.
Dividends, interest and Treasury securities
Under non-resident tax Kenya rules, a non-resident shareholder in a Kenya-resident company faces 15% on the dividend, unless a treaty says otherwise. Interest on ordinary Kenya instruments, including government securities that fall under paragraph 3(e)(i), is 15%. If you buy Treasury bills or bonds through DhowCSD, that 15% is the starting point for a non-resident. Our guides to DhowCSD and CBK securities and to investing in Kenya from abroad explain how to buy; this page is about the tax on the return.
Rent, royalties, fees and capital gains
Non-resident tax Kenya charges on rent for Kenya immovable property are steep: 30% of the gross amount. That is different from the 7.5% residential rental income tax that paragraph 10 of the Third Schedule sets for a taxable resident person under section 6A. If you live abroad and let a Nairobi flat, do not apply the resident 7.5% rate to yourself unless you actually meet the section 2 residency test. See rental income tax on iTax for the resident filing path.
Capital gains on a disposal charged under section 3(2)(f) are 15% and a final tax, under paragraph 14 of the Third Schedule. Our capital gains tax in Kenya guide walks through the property calculation.
How the tax is collected
For many non-resident tax Kenya charges, the Kenyan payer must withhold the tax and remit it to KRA. The Act and KRA practice require the payer to deduct at the statutory rate and pay the withheld tax by the due date set in the Act (KRA’s older withholding guide states the 20th of the following month; confirm the current due date on iTax and in the Act before you pay). The payer should give you a withholding certificate. If a treaty rate applies, the payer and KRA will usually want evidence of your foreign residence before they use the lower figure.
The practical non-resident tax Kenya position, as at 1 July 2026, is therefore: 15% non-resident tax Kenya on dividends and ordinary interest, 20% on royalties and most fees, 30% on rent of immovable property, and a treaty cap only where an in-force agreement actually cuts a non-resident tax Kenya rate. Check the Third Schedule before you withhold.
Frequently asked questions
What is the non-resident tax Kenya rate on dividends in 2026?
15% of the dividend, under paragraph 3(d) of the Third Schedule as at 1 July 2026, unless an in-force tax treaty sets a lower cap and you qualify for it. The Kenya-UK treaty cap is also 15%.
Do US investors get a lower treaty rate?
The National Treasury list checked on 12 November 2026 has no Kenya-United States double taxation agreement, so the domestic non-resident rates are the starting point.
Is rent taxed at 7.5% if I live in London or Dubai?
The 7.5% rate in paragraph 10 is for a taxable resident person. A non-resident is charged 30% on rent for immovable property under paragraph 3(c)(i), unless a treaty says otherwise.
Does non-resident tax Kenya apply to Treasury bill interest?
Ordinary interest, deemed interest, discount or original issue discount is 15% for a non-resident under paragraph 3(e)(i), with different figures for some bearer bonds and for SEZ payers. Confirm how your exact instrument is classified before you treat 15% as final.
Related: Kenya-UK tax treaty: 5 residency and rate rules
Related: Investing in Kenya from abroad
Related: How to open a Kenyan bank account from abroad
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