A Kenyan company can be owned and directed from anywhere in the world. Its obligations stay in Kenya. KRA penalties arrive whether or not anyone is in the country to read the email. They add up quietly while directors are busy elsewhere.
The company is Kenyan for tax
A company incorporated in Kenya is tax resident in Kenya, wherever its directors live. It pays corporation tax at 30% on its profit and must file returns on time, including nil returns in months with no activity.
What has to happen and when
| Obligation | Where | When |
|---|---|---|
| PAYE and payroll deductions | KRA and the statutory funds | By the 9th of each month |
| VAT return, if registered | KRA | By the 20th of each month |
| Withholding tax on payments made | KRA | Within five working days |
| eTIMS invoice on every sale | KRA | At the time of sale |
| Corporation tax instalments | KRA | 4th, 6th, 9th and 12th month of the year |
| Annual corporation tax return | KRA | Within six months of year end |
| Annual return and beneficial ownership updates | Business Registration Service | Every year and whenever owners change |
A private company with paid up share capital of KES 5 million or more must also appoint a company secretary.
Paying directors who live abroad
Money sent to directors outside Kenya usually carries withholding tax at non resident rates: 20% on fees and 15% on dividends, unless a tax treaty with their country sets a lower rate. The company deducts it before paying and remits it within five working days. Our withholding tax guide has the full rate card.
Where companies run from abroad slip
- An iTax login nobody can open. The password and codes go to an email or phone number of someone who has since left.
- Missed nil returns. No trading does not mean no filing.
- Bank mandates that stall payments. Every payment waits for a signatory in another time zone.
Five steps for this month
- Confirm who controls the company's iTax and eCitizen logins and move them to a company email.
- Check the iTax ledger for missed returns or open penalties.
- Confirm the annual return and beneficial ownership details on the BRS portal are current.
- Set up online banking with approval limits that work across time zones.
- Agree a monthly report so you see Kenyan numbers without asking for them.
Directing a Kenyan company from outside Kenya?
We act as your finance team on the ground: KRA returns, eTIMS, payroll, BRS filings and monthly reports you can read from anywhere.
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