Estimate Significant Economic Presence (SEP) tax for non-resident digital suppliers โ a deemed profit of 10% of turnover taxed at 30%, i.e. an effective 3% of Kenya-source turnover, the successor to the old 1.5% DST.
SEP tax (effective 3%)
3% of gross turnover ยท due by the 20th of the following month
Significant Economic Presence (SEP) tax is charged under section 12F of the Income Tax Act (Cap 470) on non-resident businesses earning Kenya-source income from digital or electronic services. Rather than taxing real profit, it works on a deemed-profit basis:
SEP tax replaced the 1.5% Digital Service Tax (DST) via the Tax Laws (Amendment) Act 2024 (effective 27 December 2024). The Finance Act 2025 (effective 1 July 2025) then widened the scope to all income from services supplied over the internet or an electronic network and removed the KES 5,000,000 threshold โ so any Kenya-source digital income is now in scope. Residents, and non-residents taxed through a Kenyan permanent establishment, stay outside SEP and pay normal income or corporation tax. SEP tax is due by the 20th of the following month.
Significant Economic Presence (SEP) tax is a Kenyan tax under section 12F of the Income Tax Act (Cap 470) charged on non-resident businesses that earn Kenya-source income from digital or electronic services. Instead of taxing actual profit, the law deems the taxable profit to be 10% of gross turnover.
The effective rate is 3% of Kenya-source gross turnover. It is built as 30% (the non-resident corporate rate) charged on a deemed taxable profit of 10% of turnover โ 30% ร 10% = an effective 3% of turnover.
The Tax Laws (Amendment) Act 2024 (assented 11 December 2024, effective 27 December 2024) repealed the 1.5% Digital Service Tax and introduced SEP tax in its place. So a non-resident that used to pay 1.5% of turnover as DST now pays an effective 3% as SEP tax.
The Finance Act 2025 (effective 1 July 2025) widened SEP tax to cover all income from services supplied over the internet or an electronic network, and removed the KES 5,000,000 annual threshold. Any Kenya-source digital income is now in scope, regardless of size.
It applies to non-resident suppliers earning Kenya-source income from digital services without a Kenyan permanent establishment. Residents โ and non-residents that are taxed through a Kenyan permanent establishment โ fall outside SEP and pay normal income or corporation tax instead.
SEP tax is payable monthly, by the 20th day of the month following the one in which the income was earned.
Informational only โ not tax advice. This calculator estimates Kenya Significant Economic Presence (SEP) tax as an effective 3% of Kenya-source turnover (10% deemed profit ร 30%), current as of June 2026 after the Finance Act 2025 scope change. It does not determine whether your income is Kenya-source, whether you have a Kenyan permanent establishment, or how a tax treaty applies. Verify your position with the Kenya Revenue Authority (KRA) and the source figures at PwC Worldwide Tax Summaries โ Kenya, or a qualified tax professional. See our full disclaimer.