Kenya Instalment Tax Estimator

Taxpayer

Business type

Estimated current-year tax (KES)

KES

Prior-year tax assessed (KES)

KES

The estimator applies 110% to this figure and uses the lower of the two bases.

Tax already deducted at source (KES)

KES

Withholding tax or PAYE credits, deducted before splitting into instalments.

Financial year end

Instalment tax for the year

KES550,000.00

As an individual with tax of KES 40,000 or less, you are not required to pay instalment tax. You settle it as the balance of tax instead.

The essentials

Instalment tax in Kenya, at a glance

4 x 25%

Four equal instalments on the 20th of the 4th, 6th, 9th, and 12th months of the accounting period.

75% / 25%

Two instalments: 75% by the 20th of the 9th month and 25% by the 20th of the 12th month.

Lower of

The current-year estimate of tax, or 110% of the prior year's assessed tax, whichever is lower.

KES 40,000

Individuals whose tax for the year is 40,000 or less are not required to pay instalment tax.

Less credits

Withholding tax and PAYE already deducted reduce the instalment tax payable.

4th month

Any remaining tax is due by the last day of the 4th month after the year end.

The 110% prior-year basis protects against underestimation penalties. The current-year estimate may be used where you expect lower profits, but underestimating can attract penalties and interest.
Companies pay instalment tax regardless of the KES 40,000 threshold, which applies to individuals.
Review your estimate as the year progresses and adjust later instalments if profits diverge from the forecast.