Kenya

{"ftc_utility":"high","fbar_trigger_notes":"US citizens with Kenyan bank accounts exceeding USD 10,000 in aggregate at any point during the calendar year must file FinCEN 114 (FBAR). Kenyan bank accounts are common for expats. M-Pesa mobile money accounts may also need to be reported if they meet the financial account definition, though IRS guidance on mobile money remains developing.","ftc_utility_reason":"Kenya taxes residents on worldwide income at progressive rates up to 35%. US expats who do not use FEIE, or who have income exceeding the FEIE limit, can claim a Foreign Tax Credit for Kenyan income taxes paid against their US tax liability. The 35% top Kenyan rate exceeds the US top rate, making the FTC effective at eliminating or reducing double taxation on income above the FEIE exclusion threshold.","presence_day_count_notes":"Kenya does not impose visa-duration restrictions that would prevent US citizens from accumulating 330 qualifying days in a 12-month period. Tourist visas have been replaced by the eTA system as of January 2024, and stays can be renewed. US citizens earning income in Kenya while meeting either FEIE test can exclude foreign earned income up to the annual limit (USD 126,500 for 2024).","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.35,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Kenya taxes pension income at progressive income tax rates up to 35%. Registered pension funds and approved retirement benefit schemes have specific exemption thresholds. Foreign pension income received by a Kenya resident is taxable. The personal relief of KES 28,800 per year applies. Lump-sum pension payments from registered Kenyan schemes may qualify for partial or full exemption depending on scheme registration status.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"No US-Kenya totalization agreement or income tax treaty exists. US Social Security benefits received by a Kenya tax resident are foreign-source income and subject to Kenyan income tax at progressive rates. There is no treaty mechanism to exempt or reduce this tax.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No US-Kenya tax treaty exists. Roth distributions, while tax-free in the US, would be treated as foreign income by Kenya and potentially subject to income tax if the recipient is a Kenya tax resident. Practical enforcement depends on whether the income is remitted or deemed arising in Kenya.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US and Kenya do not have a bilateral income tax treaty. US-source 401k and IRA distributions received by a Kenya tax resident would generally be treated as foreign income and subject to Kenyan income tax at progressive rates up to 35%. No treaty protection is available to reduce or eliminate this exposure.","tax_rate":0.35,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.15,"notes":"Kenya imposes a Capital Gains Tax (CGT) of 15% on net gains from the transfer of property, including land, buildings, and securities. CGT was reinstated at 5% in 2015 and progressively increased; the current rate of 15% applies from January 2023.","details":{"tax_type":"Capital Gains Tax","country_name":"Kenya","country_iso_code":"KEN","source_references":["PwC Worldwide Tax Summaries - Kenya","Kenya Revenue Authority (KRA)","Finance Act 2022"],"last_verified_date":"2026-06-03","general_description":"CGT applies to gains from transfer of property (land, buildings, shares, and other securities). The taxable gain is the difference between the transfer value and the adjusted cost. Effective January 2023, the rate increased from 5% to 15%. Gains on shares listed on the Nairobi Securities Exchange were previously exempt but are now subject to a 5% withholding tax at source as a final tax, while unlisted shares and other property attract the 15% rate.","corporate_capital_gains":{"rate":0.15,"tax_treatment":"Companies pay CGT at 15% on net gains from property transfers. Gains are not included in corporate income but taxed separately as CGT."},"individual_capital_gains":{"rate":0.15,"tax_treatment":"Individuals pay CGT at 15% on net gains from transfers of investment property, land, buildings, and unlisted shares. Gains from listed securities on the Nairobi Securities Exchange are subject to a 5% withholding tax as a final tax rather than the 15% CGT rate.","listed_securities_rate":0.05,"listed_securities_notes":"Gains on shares listed on the Nairobi Securities Exchange are subject to a 5% WHT as a final tax, not the standard 15% CGT."}}}

{"notes":"Dividends paid to resident individuals are subject to withholding tax at 5%, which is a final tax. Dividends paid to non-residents are subject to WHT at 15% as a final tax, unless a tax treaty provides a lower rate. Dividends paid between Kenyan-resident companies are generally exempt from further tax.","rates":[{"rate":0.05,"type":"withholding","notes":"Resident individuals - final withholding tax"},{"rate":0.15,"type":"withholding","notes":"Non-resident recipients - final withholding tax; reduced by treaty in some cases"},{"rate":0,"type":"exempt","notes":"Dividends received by a Kenyan-resident company from another Kenyan-resident company are exempt"}]}