ADVOKS GLOBAL · KENYA
Income Tax Act
10. Income from management or professional fees, royalties, interest and rents
Edition: 2026-07-01 · In force
10. Income from management or professional fees, royalties, interest and rents
(1)For the purposes of this Act, where a resident person or a person having a permanent establishment in Kenya makes a payment to any other person in respect of–(a)a management or professional fee or training fee;(b)a royalty or natural resource income;(c)interest and deemed interest;(e)an appearance at, or performance in, any place (whether public or private) for the purpose of entertaining, instructing, taking part in any sporting event or otherwise diverting an audience; or(f)an activity by way of supporting, assisting or arranging an appearance or performance referred to in paragraph (e) of this section;(j)an insurance or reinsurance premium;(k)sales promotion, marketing, advertising services, and transportation of goods (excluding air and shipping transport services;(l)supply of goods to a public entity;(m)making or facilitating payment over a digital market place;the amount thereof shall be deemed to be income which accrued in or was derived from Kenya:Provided that–(i)this subsection shall not apply unless the payment is incurred in the production of income accrued in or derived from Kenya or in connexion with a business carried on or to be carried on, in whole or in part, in Kenya;(ii)this subsection shall not apply to any such payment made, or purported to be made, by the permanent establishment in Kenya of a non-resident person to that non-resident person except for deductions provided for by agreements under section 41;(iii)for the avoidance of doubt, the expression "non-resident person" shall include both head office and other offices of the non-resident person;(2)A net gain referred to in section 3(2)(g) is deemed to be income that accrued in or was derived from Kenya.(3)Where a payment has been made to a non-resident person, withholding tax paid thereon shall not be refundable or available for deduction against the income where an audit adjustment has been made in respect of such payment.(4)Where a resident or a non-resident person, being the owner or operator of a digital marketplace or platform, makes or facilitates payment in respect of digital content monetisation, property or services, the amount thereof shall be deemed to be income which accrued in or was derived from Kenya.(5)In this section, “platform” means a digital platform or website that facilitates the exchange of a short-term engagement, freelance or provision of a service, between a service provider, who is an independent contractor or freelancer, and a client or customer.Case law referring to this provision