Tax

As Nairobi’s specialist tax law practice, OLM Law Advocates LLP represents businesses and individuals before the Kenya Revenue Authority (KRA), the Tax Appeals Tribunal and the courts. Our Nairobi-based tax lawyers advise on KRA audits and objections, transfer pricing reviews, VAT and excise disputes, and tax-efficient transaction structuring across Kenya and East Africa.

OLM Law Advocates LLP provides specialist tax advisory and dispute resolution services to multinational corporations, financial institutions, and high-net-worth individuals operating in Kenya. Our tax practice combines deep technical knowledge of Kenyan tax law with practical commercial understanding to deliver tax-efficient structures and robust defence in tax disputes.

We advise on all aspects of Kenyan taxation including corporate income tax, value added tax (VAT), customs and excise duty, withholding tax, capital gains tax, and stamp duty. Our team has extensive experience in transfer pricing compliance, tax due diligence for M&A transactions, and tax planning for foreign investors entering the Kenyan market.

We represent clients in tax disputes before the Kenya Revenue Authority (KRA), the Tax Appeals Tribunal, and the High Court. Our litigators have successfully challenged tax assessments, negotiated settlement agreements, and obtained favourable rulings on complex tax issues.

Tax

Strategic tax planning and compliance advice for corporate and individual clients in Kenya.

Corporate income tax, VAT, withholding tax, customs and excise, transfer pricing and double-tax treaty advisory under the Income Tax Act, the Value Added Tax Act and the Tax Procedures Act. We represent taxpayers before the Kenya Revenue Authority (KRA), the Tax Appeals Tribunal and the High Court, and advise on tax structuring for inbound investment and group reorganisations.

What we advise on

We advise on corporate income tax, value added tax (VAT), withholding tax, pay-as-you-earn (PAYE), capital gains tax, customs and excise duty, and the digital service tax. Our transactional tax work covers structuring for inbound investment, group reorganisations, mergers and acquisitions, and cross-border arrangements that engage Kenya’s double-tax treaty network. We also handle transfer-pricing policy and documentation, and we manage tax health-checks and voluntary-disclosure applications.

Governing law and regulators

Our advice is grounded in the Income Tax Act, the Value Added Tax Act 2013, the Tax Procedures Act 2015, the Excise Duty Act and the East African Community Customs Management Act. We deal directly with the Kenya Revenue Authority (KRA) and represent taxpayers in disputes before the Tax Appeals Tribunal, the High Court and the Court of Appeal.

Key legislation:

• Income Tax Act (Cap 470) — Corporate tax, personal tax, withholding tax, and capital gains tax
• Tax Procedures Act, 2015 — Tax administration, assessment, objection, and dispute resolution
• Value Added Tax Act, 2013 — VAT registration, compliance, and recovery
• East African Community Customs Management Act, 2004 — Customs duty, import/export regulations
• Excise Duty Act, 2015 — Excise duty on specified goods and services
• Tax Appeals Tribunal Act — Procedure for challenging tax assessments

Who we act for

We act for multinational subsidiaries, listed and private Kenyan companies, financial institutions, high-net-worth individuals and not-for-profits. Clients come to us both for forward planning — getting the structure right before a deal or an investment — and for defence when the KRA raises an assessment.

Why OLM for tax

We pair technical tax knowledge with the litigation capability to defend a position before the Tribunal and the courts — so our planning advice is given by people who know how the KRA actually litigates. Fees are scoped upfront, including for contentious work where we can often agree a capped or staged structure.

Clients choose OLM for:

• Deep technical expertise across all Kenyan tax laws and regulations
• Proven track record in Tax Appeals Tribunal and High Court litigation
• Experience advising multinational corporations on cross-border tax structures
• Integrated tax, corporate, and M&A advisory for transaction efficiency

Our services

Corporate Tax Planning & Compliance

Advisory on corporate tax structuring, tax-efficient financing arrangements, group restructuring, and compliance with the Income Tax Act, including filing obligations and tax incentives under the Kenya Investment Promotion Act.

Tax Dispute Resolution

Representation in KRA audits, tax objection proceedings, appeals to the Tax Appeals Tribunal, and judicial review applications in the High Court. We handle income tax, VAT, customs, and excise disputes.

Transfer Pricing

Preparation of transfer pricing documentation (local files and master files), benchmarking studies, Advance Pricing Agreements (APAs) with the KRA, and defence in transfer pricing audits.

VAT & Customs Advisory

Advice on VAT registration, VAT compliance, input VAT recovery, customs classification, valuation, and duty exemption applications under the East African Community Customs Management Act.

Tax Due Diligence

Tax due diligence for M&A transactions, identifying historical tax exposures, assessing tax warranties, and advising on tax-efficient acquisition structures including asset vs. share acquisitions.

Foreign Investor Tax Advisory

Tax planning for foreign investors entering Kenya, including withholding tax optimisation under double tax treaties, permanent establishment risk assessment, and repatriation of profits.

Frequently asked questions

What is the corporate income tax rate in Kenya?

Resident companies are taxed at 30% on taxable profit; the rate for non-resident companies operating through a permanent establishment is 37.5%. Preferential rates apply to certain newly listed companies and to entities in special economic zones.

How long does a tax dispute take at the Tax Appeals Tribunal?

A matter before the Tax Appeals Tribunal typically takes 12 to 24 months to a decision, with a further appeal available to the High Court. We advise on whether alternative dispute resolution with the KRA offers a faster commercial outcome. For a detailed walkthrough of the objection-to-appeal process, see our guide to how tax disputes work in Kenya.

Does Kenya tax digital and cross-border services?

Yes. Kenya applies a digital service tax and VAT on digital-market-supplies to certain cross-border digital services. We advise non-resident providers on registration and compliance, and on the interaction with applicable double-tax treaties.

What is the VAT rate in Kenya?

The standard VAT rate is 16%, with certain supplies zero-rated or exempt. Businesses exceeding the registration threshold must register, charge and account for VAT. We advise on VAT registration and compliance.

How do I challenge a tax assessment from the KRA?

If you disagree with a tax assessment issued by the Kenya Revenue Authority, you can file a notice of objection within 30 days of receiving the assessment. The objection must state the grounds of objection and be accompanied by supporting documentation. If the KRA upholds the assessment, you may appeal to the Tax Appeals Tribunal within 30 days. Further appeal lies to the High Court on points of law. We represent clients at all stages of the tax dispute process, from drafting objections to Tribunal hearings and High Court appeals.

What is transfer pricing and do I need to comply?

Transfer pricing refers to the pricing of transactions between related entities. Under the Income Tax (Transfer Pricing) Rules, 2006, Kenyan taxpayers engaging in cross-border related-party transactions must prepare transfer pricing documentation demonstrating that their transactions are at arm’s length. The KRA has intensified transfer pricing audits in recent years. We prepare transfer pricing documentation, conduct benchmarking studies, and defend clients in transfer pricing audits.

Are there tax incentives for foreign investors in Kenya?

Kenya offers several tax incentives for foreign investors, including: 100% investment deduction on industrial buildings and machinery; 10-year tax holiday for companies in Special Economic Zones and Export Processing Zones; reduced corporate tax rate of 15% for newly listed companies; and capital allowances on various categories of assets. Additionally, Kenya has double tax treaties with over 20 countries that reduce withholding tax rates on dividends, interest, and royalties. We advise on the optimal structure to maximise available tax incentives.

Explore Related Services

Industry sectors we advise in this area: Financial Services & Fintech · Private Wealth & Family Business

Related practice areas: Corporate & Commercial · Mergers & Acquisitions · Private Clients, Wealth & Family

See also: Representative Matters · Our Lawyers · All Practice Areas

Related reading: How Tax Disputes Work in Kenya: From Objection to the Tax Appeals Tribunal · VAT on Commercial Property Sales · VAT Reprieve on Interchange Fees