The below DTAs have been ratified by both Kenya and the treaty partner and therefore apply for tax purposes (e.g., reduced WHT rates, allocation of taxing rights, foreign tax credits):
» Canada
» Denmark
» Norway
» Sweden
» France
» Germany
» India
» Iran
» Qatar
» Seychelles
» South Africa
» South Korea
» United Arab Emirates
» United Kingdom
» Zambia
Additionally, Kenya–Singapore DTA was signed in 2024 and has been gazetted and reported to be in effect (ratified/entered into force as of May 2025).
Withholding Tax Rates Under the Kenyan Domestic Law
Before considering treaty rates, Kenya’s standard domestic WHT rates on payments to non-residents are:
| Category | Domestic WHT (Non-resident) |
| Dividends | 15% |
| Interest | 15% (varies by instrument) |
| Royalties | 20% |
| Management/Professional Fees | 20%, 15%, 12.5% depending on jurisdiction |
| Consultancy Fees | 20% |
| Other Ekata WHT (e.g., rent, equipment lease) | 15–30% depending on category |
Key Treaty Withholding Tax Rates & Provisions
Below are representative treaty rates for selected DTAs currently in force (effective):
India – Kenya DTA (In Force)
The Kenya–India DTA is given effect in Kenya by Legal Notice 147 of 2017 and applies to income taxes.
| Category | Treaty WHT Rate |
| Dividends | 10% |
| Interest | 10% |
| Royalties | 10% |
| Business Profits (PE based) | Taxable only if PE in source state |
Key treaty concepts
- Permanent Establishment (PE): Profits of a non-resident are taxable in Kenya only if attributable to a PE there (i.e., a fixed place of business, branch, or activities beyond threshold).
- Business Profits: Taxable in the source state only if there is a PE.
- Dividends & Interest: Reduced compared with domestic rates.
United Kingdom – Kenya DTA (In Force)
The UK–Kenya DTA has been in force since the 1970s (in effect from 1976/77).
Typical treaty rates (according to Kenya’s treaty WHT table):
| Category | Treaty WHT Rate |
| Dividends | 15% |
| Interest | 15% |
| Royalties | 15% |
| Management/Professional Fees | 12.5% |
Permanent Establishment (PE)
A business is only taxable in the other country if it has a PE there (typically defined by fixed place, branch, or a specified service-connected activity threshold).
Canada – Kenya DTA (In Force)
Under the Canada–Kenya DTA (effective since 1987):
| Category | Treaty WHT Rate |
| Dividends | 15% |
| Interest | 15% |
| Royalties | 15% |
| Management/Professional Fees | 15% |
PE & Business Profits
Taxable in Kenya only if attributable to a PE in Kenya; otherwise, profits are usually taxable only in the residence state.
France – Kenya DTA
France’s treaty with Kenya provides relatively favourable rates:
| Category | Treaty WHT Rate |
| Dividends | 10% |
| Interest | ~12% |
| Royalties | 10% |
| Business Profits | PE based |
Iran, Qatar, Seychelles, UAE, South Africa, South Korea
Common reduced rates under these treaties generally include:
| Country | Dividends | Interest | Royalties | Fees/Business |
| Iran | 5% | 10% | 10% | — |
| Qatar | 5% (special) | 10% | 10% | — |
| Seychelles | 5% | 10% | 10% | 10% |
| UAE | 5% | 10% | 10% | — |
| South Africa | 10% | 10% | 10% | — |
| South Korea | 10% | ~12% | 10% | — |
Kenya – Singapore DTA (New In Force)
This treaty recently entered into force (2025) with clear WHT rates and PE provisions:
| Category | Treaty WHT Rate |
| Dividends | 8% |
| Interest | 10% |
| Royalties | 10% |
| Technical Fees (e.g., professional/consultancy) | 10% |
Permanent Establishment (PE) rules
This treaty includes specific PE thresholds:
- Construction activities: 6 months
- Services (incl. consultancy): 183 days in 12-month period
- Natural resource activities: 91 days in 12-month period
Posted by Godfrey, Director at Seal Associates