Add or remove 16% VAT on any amount in Kenyan Shilling, and check whether your turnover means you must register for VAT.
Standard rate in Kenya: 16%.
Registration is compulsory once taxable supplies reach KES 5 million in 12 months.
Adding VAT: multiply the amount excluding VAT by 16% and add it on. KES 10,000 + 16% = KES 1,600 VAT, so the total is KES 11,600.
Removing VAT: divide the VAT-inclusive amount by 1.16 to find the amount excluding VAT, or multiply it by 16/116 to find the VAT. KES 11,600 ÷ 1.16 = KES 10,000, so the VAT inside it is KES 1,600.
| Topic | 2026 rule |
|---|---|
| Standard VAT rate | 16% |
| Compulsory registration | Taxable supplies of KES 5 million or more in 12 months |
| VAT return & payment | Monthly on iTax, by the 20th of the following month |
| Withholding VAT | 2% withheld by appointed agents |
| eTIMS | Every business must issue its tax invoices through KRA eTIMS |
Last reviewed October 2026. Tax and payroll content is general information — confirm your position with the Kenya Revenue Authority (KRA), the SHA, the NSSF or a registered tax agent.
The standard rate is 16%. Some supplies, such as exports, are zero-rated, and others are exempt.
Divide the VAT-inclusive price by 1.16. For KES 5,800 including VAT, the price excluding VAT is KES 5,000 and the VAT is KES 800.
When your taxable supplies reach KES 5 million in any 12-month period, or you expect them to. You can also apply to register voluntarily below that.
Yes. It is free to use with no sign-up. ETaxFlow’s accounting software applies the same 16% calculation to every invoice and sends it to KRA eTIMS.