Withholding Tax Rates
Description Resident Non-Resident
Artists and entertainers – –
Management fees 5% 20%
Professional fees 5% 20%
Training fess (inclusive of incidental costs) 5% 20%
Winnings from betting and gaming (w.e.f. 1 Jan 2014) 20% 20%
Royalties 5% 20%
Dividends (nil for resident shareholders with>12.5%) 5% 15%
Equipment (movable) Leasing N/A 5%
Interest (Bank) 15% 15%
Interest (Housing Bond) 10% 15%
Interest on two – year government bearer bonds 15% 15%
Other bearer bonds interest 25% 25%
Rent – buildings (immovable) 10% 30%
Rent – others (except aircraft) N/A 15%
Pensions/provident schemes (withdrawal) 10-30% 5%
Insurance Commissions 10% 20%
Consultancy and agency(from 1 July 2003) 5% 20%
Contractual and agency (from 1 July 2003) 3% 20%
Telecommunication services/Message transmission – 5%
Natural Resource Income (w.e.f. 01/01/2015) 5% 20%

Services exempt from withholding tax
1) Dividends received by a company resident in Kenya from a local subsidiary or associated company in which it controls (directly or indirectly) 12.5% or more of the voting power.
2) Marketing commissions and residue audit fees paid to foreign agents in respect of export of flowers, fruits and vegetables.
3) Interest payments to banks and insurance companies.
4) Payments made to tax exempt bodies.
5) Local management and professional fees whose aggregate is below Kshs 24,000 in a month.
6) Air travel commissions paid by local air operators to overseas agents.