Best Tax Lawyers in Nairobi, Kenya: Corporate Tax, Property Tax & KRA Disputes Explained

Tax in Kenya is governed nationally by the Income Tax Act and administered by the Kenya Revenue Authority (KRA), covering corporate income tax (30% for resident companies), VAT (16% standard rate), capital gains tax (15% on property and securities), and PAYE on employment income. Kenyan tax rates and bands are revised frequently through the annual Finance Act, so what to look for in a tax lawyer in Nairobi matters more than any specific number: someone who confirms current rates against live KRA guidance rather than reciting last year’s figures, and who can actually represent you if a routine filing turns into a dispute.

Kenya’s Tax Framework

Statute	What it governs	Administered by
Income Tax Act (Cap. 470)	Corporate income tax, PAYE, withholding tax, capital gains tax	Kenya Revenue Authority (KRA)
Value Added Tax Act (Cap. 476)	VAT on goods, services, and imported digital services	Kenya Revenue Authority (KRA)
Excise Duty Act (Cap. 472)	Excise duty on specified manufactured goods and services	Kenya Revenue Authority (KRA)
Tax Procedures Act (Cap. 469B)	Assessment, objection, and dispute procedure with KRA	KRA / Tax Appeals Tribunal
Stamp Duty Act (Cap. 480)	Stamp duty on property transfers and certain instruments	KRA / Land Registries

Major Tax Categories

Tax category	What generally applies
Corporate Income Tax	30% for resident companies on worldwide income. Non-resident companies operating through a Kenyan permanent establishment are taxed on Kenyan-sourced profits at a rate that should be confirmed for your specific structure, since sources currently disagree on whether the applicable rate is 30% or 37.5% following recent legislative changes. Certain sectors (real estate development, financial institutions, digital service providers) and structures (NSE-listed companies, EPZ/SEZ enterprises) carry different rates entirely.
Personal Income Tax (PAYE)	Progressive bands applied to employment income, revised periodically through the annual Finance Act Kenya’s PAYE bands were themselves under active legislative revision in 2026, so we confirm the current bands directly with KRA guidance for each client rather than quoting a fixed table that may go stale within months.
Rental & Property Income	Residential rental income is generally taxed under a simplified monthly rental income regime within a set gross income band, with standard corporate or income tax rates applying above that band.
Capital Gains Tax (CGT)	15% on the net gain from transferring property, land, or marketable securities raised from 5% in 2023. The first KES 3 million of gain on a primary residence is exempt, as are transfers between spouses and on death.
VAT	16% standard rate on most goods, services, and imported digital services, with certain categories zero-rated or exempt.

Corporate and Business Tax Compliance

Choosing between a branch and a subsidiary, structuring intercompany transactions, and managing ongoing KRA compliance are usually handled alongside our corporate lawyers, since the entity structure and the tax exposure are decided together, not separately.

Property and Real Estate Tax

Selling or transferring property in Kenya triggers both capital gains tax and stamp duty, and getting either wrong or missing an available exemption is a common, expensive mistake. This connects directly to our conveyancing and real estate practice, and to a due diligence point we’ve covered separately: undisclosed liabilities (including unpaid land rates) are one of the land-buying scam patterns we see buyers exposed to when tax and title issues aren’t checked together.

Cross-Border Tax: Withholding Tax and Double Taxation

Payments to non-residents dividends, interest, royalties, management fees generally attract withholding tax in Kenya, though Kenya’s double taxation agreements with a number of countries can reduce the applicable rate. This is one of the most common blind spots for foreign investors; our cross-border and international lawyers cover a wider legal picture for foreign investment and cross-border transactions in more depth.

Disputing a KRA Assessment or Penalty

Getting an unexpected assessment or penalty notice from KRA isn’t necessarily final but the objection window is short, and missing it can forfeit your right to challenge the assessment at all. Where a dispute escalates to the Tax Appeals Tribunal or the High Court, our commercial litigation lawyers represent clients through that process.

Tax-Efficient Estate and Trust Structuring

Registered family trusts carry specific stamp duty and capital gains tax exemptions on transfers into the trust, on top of helping a family avoid a slow, public probate process. We’ve covered this in more depth in our guide to private client law and estate planning in Kenya, which our private client lawyers handle directly alongside tax structuring advice.

Frequently Asked Questions

What is the corporate tax rate in Kenya?

30% for companies resident in Kenya, applied to worldwide income. Non-resident companies operating through a Kenyan branch or permanent establishment are taxed on Kenyan-sourced profits at a rate that depends on current KRA guidance and recent legislative changes this is worth confirming for your specific structure rather than assuming a fixed figure, since it has changed more than once in recent years.

How much is capital gains tax on property in Kenya?

15% on the net gain from selling land, buildings, or marketable securities, up from 5% before 2023. The first KES 3 million of gain on a primary residence is exempt, and transfers between spouses or on death are also exempt from CGT.

Do I need a tax lawyer or an accountant?

An accountant typically handles routine filing, bookkeeping, and compliance. A tax lawyer is worth involving for structuring decisions (choosing between a branch and subsidiary, setting up a family trust, planning a cross-border transaction), for disputing a KRA assessment or penalty, or whenever a tax question has legal consequences beyond the numbers themselves.

How do I dispute a KRA tax assessment?

You generally have 30 days from an assessment to lodge a formal Notice of Objection with KRA under the Tax Procedures Act. If the objection is rejected or not resolved, the matter can be escalated to the Tax Appeals Tribunal and, from there, to the High Court missing the initial objection deadline can forfeit your right to dispute the assessment at all, so timing matters more than almost anything else in this process.

Can a family trust reduce my tax exposure in Kenya?

Registered family trusts can benefit from specific stamp duty and capital gains tax exemptions on transfers into the trust under the Finance Act, 2021, and can help avoid the costs and delays of probate. It isn’t the right structure for every estate, but it’s worth evaluating alongside a will something our private client team covers in more depth.