Withholding tax on KSh 100,000 of management or professional fees is KSh 5,000 (5%).
How withholding tax works
When you pay certain resident suppliers, such as consultants, lawyers or contractors, you're required to deduct a percentage of the payment as withholding tax before paying them, then remit that amount to KRA on their behalf. The supplier receives a certificate showing what was withheld, which they credit against their own annual tax bill.
This calculator covers the most common resident payment categories: professional and management fees, consultancy and training, contractual and construction work, and commercial rent, each at its own rate.
Rates used in this calculator
Withholding tax (residents)
Management or professional fees
5%
Consultancy, training or agency fees
5%
Contractual fees (construction, etc.)
3%
Commercial rent (resident)
10%
Dividends (resident)
5%
Interest on deposits
15%
Frequently asked questions
What's the withholding tax rate on professional fees in Kenya?
Resident professional, management and consultancy fees attract 5% withholding tax. Contractual and construction services attract a lower 3%.
Is withholding tax an extra cost, or does it count toward what I owe?
For residents, WHT is not an additional cost; it is an advance payment of tax. The amount withheld is credited against your final annual income tax liability when you file your return.
Who is responsible for deducting and remitting withholding tax?
The person or business making the payment is the withholding agent. They deduct the tax before paying the supplier or professional, then remit it to KRA and issue a withholding tax certificate.
Is there a minimum amount below which WHT does not apply?
Yes. Resident management, professional, training and contractual fees are exempt from WHT if their aggregate value is KSh 24,000 or below in a month.