Turn your accounting profit into company income tax at the 30% rate โ adjusting for disallowed add-backs and capital allowances, with the 30% branch/PE and 15%/20% NIFCA start-up rates built in.
Corporation tax payable
Rate 30% ยท effective 30.0% of accounting profit
Taxable profit = accounting profit + disallowed add-backs โ capital allowances and exempt income. Tax is then charged at the company rate, so a deduction such as a capital allowance is worth 30% of its value here.
Corporation tax (company income tax) under the Income Tax Act (Cap 470) is charged on taxable profit, which is your accounting profit adjusted for tax:
30% for resident companies and non-resident branches/PEs (cut from 37.5% by the Finance Act 2025), or 15% / 20% for NIFCA-certified start-ups in years 1โ3 and 4โ7.The annual return is due within 6 months of year-end and the balance of tax within 4 months, while instalment tax falls on the 20th of the 4th, 6th, 9th and 12th months. Track every due date with the KRA filing-deadline tracker.
Resident companies โ including Kenyan subsidiaries of foreign parents โ pay company income tax at a flat 30% of taxable profit. There are no lower bands for smaller companies; the rate is the same regardless of size.
Non-resident companies operating through a branch or permanent establishment in Kenya are now taxed at 30%. The Finance Act 2025 (effective 1 July 2025) cut this from the old 37.5% rate, and no further tax applies on remitting branch profits abroad.
Yes. Start-ups certified by the Nairobi International Financial Centre Authority (NIFCA) pay 15% for their first 3 years of operation and 20% in years 4โ7, before reverting to the standard 30% rate. You must hold valid NIFCA certification to use these rates.
Taxable profit = accounting profit + disallowed add-backs โ capital allowances โ tax-exempt income. You add back non-deductible items such as accounting depreciation and fines, then deduct tax capital allowances (wear-and-tear, investment deductions) and remove income that is exempt from tax. The result is the figure the 30% rate is applied to.
From the 2026 income year, business expenses that are not supported by a valid eTIMS (electronic Tax Invoice Management System) invoice are not deductible. Such spend must be added back to accounting profit, increasing taxable profit and the tax due โ so capturing every supplier invoice on eTIMS directly protects your deductions.
The annual company income tax return is due within 6 months of the financial year-end, and the balance of tax is payable within 4 months of year-end. Instalment tax is paid in four instalments โ on the 20th of the 4th, 6th, 9th and 12th months of the year of income.
Informational only โ not tax advice. This calculator estimates Kenya corporation tax using the 30% resident and branch/PE rate, and the 15%/20% NIFCA start-up rates, current as of June 2026. It does not capture every adjustment (e.g. tax losses carried forward, transfer-pricing adjustments, or specific exemptions), which change the result. Rates and rules are sourced from PwC Worldwide Tax Summaries โ Kenya (Taxes on corporate income). Verify your figures with the Kenya Revenue Authority or a qualified tax adviser. See our full disclaimer.