Withholding tax
Tax deducted at source by the payer from certain payments and remitted to KRA on the payee's behalf.
Also called
You will also see this written as WHT. Kenyan businesses use these interchangeably in conversation even where the underlying things differ, which is worth knowing when someone tells you what you need.
Where you meet this
Withholding tax is deducted by your customer before they pay you, and remitted on your behalf. Consultancies, agencies, transporters and contractors meet it constantly. The practical consequence is cash flow: you invoice one amount and receive less, and the certificate for the difference is a document you need and frequently have to chase.
What it sits alongside
In Kenyan business records withholding tax sits alongside Kenya Revenue Authority, Income tax and Tax invoice. The pages for each explain how they connect.
Related terms
Common questions
What does Withholding tax mean in Kenya?
Tax deducted at source by the payer from certain payments and remitted to KRA on the payee's behalf.
Is Withholding tax the same as WHT?
In everyday use Kenyan businesses treat these as the same thing. Tax deducted at source by the payer from certain payments and remitted to KRA on the payee's behalf.
How do I know this information is current?
Tax rules in Kenya change with each Finance Act and with regulations made during the year. Before acting on any figure, deadline or threshold, check the current position on KRA's own website.
Sources
- officialIncome Tax Act (Cap. 470) — National Council for Law Reporting (Kenya Law), checked 2026-09-18
- officialKenya Revenue Authority — Kenya Revenue Authority, checked 2026-09-18