Living in Kenya: 183-day residency requirement, tax rates from 10 to 35 % and a 15 % tax on capital gains from real estate.

This page reports information published by the Kenya Revenue Authority (KRA), the Kenyan Parliament, the French tax authority (BOFiP), and impots.gouv.fr. The Income Tax Act defines residency as having a permanent home in Kenya and being present there during the year, or, without a permanent home, spending 183 days or more in the year, or an average of more than 122 days over three years. The salary scale ranges from 10 % to 35 %, with these brackets in effect since July 1, 2023. Capital gains on property located in Kenya are taxed at 15 % of the net gain. The Constitution limits non-citizen leases to 99 years.

The Finance Act 2026, largely applicable since July 1, 2026, creates a tax on rental income from non-residents. This page highlights each point that the sources consulted do not confirm.

Tax residence: Article 2 of the Income Tax Act

The KRA publishes the Income Tax Act (Cap. 470) in its updated version as of July 1, 2026, noting that Act No. 19 of 2026 contains amendments not yet incorporated. For an individual, the definition of "resident" in section 2 refers to:

• the person who has a permanent home in Kenya and who has been present there for some period of the income year in question;
• or, without a permanent home in Kenya, the person is present for 183 days or more in total in the income year;
• or, without a permanent home, the person present in Kenya in the year and in each of the two preceding years for periods averaging more than 122 days per year.

The text of the 2026 Finance Law does not modify this definition. Between France and Kenya, Article 4 § 2 of the convention distinguishes between dual residences in this order, according to the consolidated text published by impots.gouv.fr: the permanent home, then the center of vital interests, the habitual residence, nationality, and finally the agreement of the competent authorities.

Income tax: tax brackets and tax relief

The KRA publishes the following annual installments, effective since July 1, 2023 (Finance Act 2023). The text of the Finance Act 2026 does not modify them.

The personal reduction is 2,400 KES per month (28,800 KES per year) and applies to residents. The insurance reduction is 15 % of premiums, capped at 60,000 KES per year. The Affordable Housing Levy is 1.5 % of gross monthly salary. Effective January 1, 2027, the 2026 Finance Act sets the filing deadline for individuals' tax returns as the last day of the fourth month following the end of the income year.

Dividends, interest and fees: withholding tax

The KRA's page on withholding tax, which does not have a date, gives the rates below.

The dividend line item adds that the rate is zero for a resident company holding more than 12.5 % of capital, and 5 % for qualifying resident dividends and for citizens of the East African Community. A KRA notice dated November 30, 2020, indicates 5 % for residents and 10 % for non-residents: the two pages do not match, and the applicable rate is confirmed in the Income Tax Act. For a non-resident without a permanent establishment, the withholding tax is generally final.

Capital gains: 15 % of the net gain

The KRA specifies a flat tax rate of 15 % on the net gain. This applies to gains from the transfer of property located in Kenya and, since July 1, 2023, to the sale of shares in foreign entities where more than 20 % of value is derived from Kenyan real estate, as well as the sale by a non-resident of more than 20 % of the capital of a Kenyan company. The tax is due on the earlier of the following two dates: receipt of the full purchase price or registration of the transfer deed.

Exemptions cited by the KRA:

• private residence, if the owner has lived there without interruption for the three years preceding the transfer;
• transfers between spouses, including between ex-spouses in a divorce or separation agreement, and for the benefit of close family;
• transfers from a personal representative to beneficiaries during the administration of an estate.

The 2026 Finance Act adds an exemption for transfers to a real estate investment trust (REIT) registered with the KRA, and a provision on transfers of shares by non-residents whose value originates from Kenya.

Real estate: 99-year lease, rents and rights

Acquisition by a non-citizen. Article 65 of the Constitution of Kenya (as published by Parliament) reserves the right to leasehold land to non-citizens for a maximum of 99 years. Any clause granting a longer term is deemed to grant a 99-year lease. A company is considered a citizen company only if it is wholly owned by citizens.

Rents of a resident. Residential rental income tax (Monthly Rental Income) is 7.5% of the gross rent, effective January 1, 2024. This is a final tax without deduction of expenses. It applies to annual rents exceeding 288,000 KES (the threshold set by the Finance Act 2020) and up to 15 million KES, and applies to resident landlords; non-resident landlords are exempt. Payment is due by the 20th of the following month. A section on the same page cites 10% of the gross rent; this rate is confirmed by the KRA (Korean Revenue Authority).

Rents from a non-resident. The 2026 Finance Act introduces Article 6B: a final tax on rents paid by non-residents, at the Third Schedule rate, with simplified registration and filing before the 20th of the following month, unless a resident collects the rent on behalf of the non-resident and withholds the tax. The undated KRA page on withholding tax indicates 30 % for rent paid to a non-resident. The text of the Act does not specify this rate.

The KRA pages consulted do not provide stamp duty rates on real estate transfers.

Inheritance, gifts and special regimes

The pages consulted from the KRA do not describe inheritance or gift taxes; this point is not detailed here. They also do not describe any regime for new residents or retirees. The exemption for transfers from a personal representative to beneficiaries, mentioned above, relates to capital gains tax.

Coordination with the Franco-Kenyan convention

The convention was signed in Nairobi on December 4, 2007 and entered into force on November 1, 2010. The consolidated text incorporates the multilateral convention, which entered into force on January 1, 2019 for France and on May 1, 2025 for Kenya.

Leaving France is subject to tax domicile and exit tax: see related pages below.

What this page does not cover

It does not detail the tax rate on non-resident rental income, stamp duties, social security contributions, residence permits and visas, or the taxation of foreign-sourced income of a resident. Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters must be verified with a professional based in Kenya. French tax matters, including the departure declaration and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• The number of days spent in Kenya, the existence of a permanent home, and presence in the two previous years.
• The nature of the income: salary, dividends, interest, rent, capital gains.
• Resident or non-resident status determines deductions and exemptions.
• Your residency situation in France and Kenya, year by year.

The rule depends on your situation. No results are guaranteed.