Tax
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.
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.
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.
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 corporate tax rate for resident companies in Kenya? Resident companies are taxed at 30% on taxable profit; non-resident companies with a permanent establishment are taxed at 37.5%. Special rates apply in special economic zones and for certain newly listed companies.
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.