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Withholding Tax (WHT) in Kenya: Rates and How It Works
5 min read · Updated 15 October 2026 · More salary & tax tools
Withholding tax (WHT) is tax deducted at source by the person making a payment, rather than by the person receiving it. The payer deducts a percentage, pays the balance to the supplier, and remits the tax to KRA.
It applies to many types of income, including professional fees, rent, interest and dividends. Knowing the rate helps you predict the amount you will actually receive and quote the right invoice value.
What withholding tax is
WHT shifts the collection of tax to the point of payment. As an added compliance incentive, a payer who correctly withholds tax can generally deduct the expense, while failing to withhold can lead to penalties for the payer.
For many payments WHT is a final tax, meaning the recipient does not pay further tax on that income, while for others it is a credit against the recipient's final tax liability.
Resident withholding tax rates
Common resident withholding tax rates
| Payment type | Rate |
|---|---|
| Management, professional & consultancy fees | 5% |
| Contractual fees (works and services) | 3% |
| Interest, fixed deposits and money market funds | 15% |
| Dividends | 5% |
| Rent for immovable property | 10% |
| Insurance and agency commissions | 10% (brokers 5%) |
Good to know: Rent of immovable property carries 10% WHT, which is separate from the Residential Rental Income Tax regime that some landlords elect instead.
Non-resident rates
Payments to non-residents generally attract higher withholding rates. Rent remitted to a non-resident property owner is taxed at 30% and dividends paid to foreign shareholders at 15%, with other categories set by the relevant double tax agreement where one applies.
How WHT affects what you are paid
If a client pays you a gross professional fee of KSh 100,000, they deduct 5% (KSh 5,000) and remit it to KRA, so you receive KSh 95,000.
Working in reverse, if you need to receive KSh 100,000 after WHT, the gross invoice must be KSh 105,263, because the 5% deduction applies to the gross amount: 100,000 / 0.95.
Worked example: 5% professional fee WHT
| Item | Gross basis | Net basis |
|---|---|---|
| Gross invoice | KSh 100,000 | KSh 105,263 |
| WHT at 5% | KSh 5,000 | KSh 5,263 |
| Amount received | KSh 95,000 | KSh 100,000 |
Filing and records
- The payer is responsible for deducting WHT and remitting it to KRA by the statutory deadline.
- Request a withholding certificate so you can support your records or claim credit.
- Keep invoices that clearly separate professional fees from reimbursed expenses such as disbursements.
- Confirm the current rate with KRA before issuing a large invoice.
Quick Answers
Withholding Tax (WHT) Rates in Kenya FAQs
What is withholding tax in Kenya?
Withholding tax is tax deducted at source by the person making a payment. The payer deducts a set percentage from the payment, remits it to KRA, and pays the balance to the supplier.
What is the withholding tax rate on professional fees?
Professional, management and consultancy fees paid to residents attract 5% withholding tax, while contractual fees for works and services are taxed at 3%.
How do I calculate the gross amount when a client pays net of WHT?
Divide the net amount you want to receive by one minus the withholding rate. For 5% WHT, divide by 0.95, so a target net of KSh 100,000 corresponds to a gross invoice of about KSh 105,263.