Do I need to declare bank interest in Kenya?

Bank interest is final tax at 15%. You can choose not to include it in your return, but if you do, the WHT is credited against your tax.

What is the withholding tax rate on dividends in Kenya?

Dividends from resident companies are subject to 5% withholding tax for residents, which is final tax.

How to File Withholding Tax Returns on KRA iTax 2025

💳 What is Withholding Tax?

Withholding Tax (WHT) is tax deducted at source before you receive payment. Common types include:

Income Type	WHT Rate (Resident)	WHT Rate (Non-Resident)
Dividends	5%	15%
Interest (Banks)	15%	15%
Royalties	5%	20%
Management/Professional Fees	5%	20%
Consultancy Fees	5%	20%
Contractual Fees	3%	20%

📌 Note: Withholding tax on dividends and interest is usually final tax - you don't need to include it in your annual return unless you want to claim a refund.

📋 Documents You'll Need

Withholding Tax Certificates: From each payer showing tax deducted
Bank Statements: Showing interest earned and WHT deducted
Dividend Statements: From companies/brokers
Consultancy Contracts: If applicable
P9 Form: If you also have employment income

📋 Step-by-Step Filing Guide

Log in to iTax

Visit itax.kra.go.ke and log in.

Start Filing Process

Go to "Returns" → "File Returns" → Select "Income Tax - Resident Individual".

Answer Questionnaire

When asked about income sources, answer "Yes" to:

"Did you receive dividend income?" (if applicable)
"Did you receive interest income?" (if applicable)
"Did you receive other income subject to WHT?" (if applicable)

Enter Dividend Income

For each dividend payment received:

Payer's PIN: Company that paid dividends
Gross Dividend: Amount before WHT
WHT Deducted: Tax withheld (usually 5%)
Net Received: Amount you actually received

💡 Dividend WHT is final tax for residents. You can choose not to include it in your return.

Enter Interest Income

For bank interest and other interest income:

Institution PIN: Bank or financial institution
Gross Interest: Total interest earned
WHT Deducted: Tax withheld (usually 15%)

💡 Interest from banks is final tax. Interest from other sources may need to be included in taxable income.

Enter Consultancy/Professional Fees

If you received consultancy or professional fees:

Payer's PIN: Client who paid you
Gross Amount: Total fee before WHT
WHT Deducted: Tax withheld (5%)
Nature of Service: Description of work

⚠️ Important: Consultancy fees are NOT final tax. The gross amount is added to your taxable income, and WHT is credited against your tax liability.

Review Tax Computation

The system will calculate:

Total taxable income
Tax payable on taxable income
Less: WHT already deducted
Less: PAYE (if employed)
Net Tax Payable or Refund

Submit and Pay (if applicable)

Submit your return. If tax is payable, pay via M-Pesa Paybill 572572.

📊 Final Tax vs. Non-Final Tax

✅ Final Tax (No need to include in return)

Dividends from resident companies (5%)
Interest from banks/financial institutions (15%)
Interest from listed bonds (10%)

⚠️ Non-Final Tax (Must include in return)

Consultancy/Professional fees (5%)
Management fees (5%)
Contractual fees (3%)
Royalties (5%)

🎥 Video Tutorial

▶️ Watch KRA Withholding Tax Filing Tutorial

❓ FAQs

Q: Do I need to declare bank interest?

A: Bank interest is final tax. You can choose not to include it, but if you do, the WHT is credited against your tax.

Q: How do I get a WHT certificate?

A: Request from the payer (company, bank, client). They're required to provide it.

Q: Can I claim a refund for WHT?

A: Yes, if your total WHT exceeds your tax liability, you can claim a refund through iTax.

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