A tax refund is a reimbursement of excess tax paid or tax paid in error in a given period.

• Tax refunds resulting from zero rating of exportation of goods allow exporters to be more competitive in the foreign market and allow them to plough it back into the business.
• Ensure affordability of certain goods and services deemed as essentials e.g. zero rating of bread, milk, flour.
• To ensure equity where tax is deducted in error

Income Tax Refunds

This refund will arise from tax overpayments by both individual and corporate taxpayers.

The following circumstances may lead to an income tax refund:

• Over deduction of tax(PAYE) by the employer
• Tax incentives on mortgage interest relief, insurance premium relief, and annual tax relief
• Exemption on account of disability.
• Overpayment of Instalment Taxes 
• Withholding Tax
• Advance Tax credits

NB: A claim for an Income Tax refund must be made within five (5) years from the date the tax was paid.

VAT Refunds

VAT refunds occur as a result of overpayment of taxes as a result of:

• Excess credits as a result of zero-rated supplies
• Excess credits arising out of withholding VAT
• Bad debts- after a period of three years but not more than 4 years from the date of that supply (where a registered person has made a supply and has accounted for and paid tax on that supply and has not received any payment from the person liable to pay the tax)

Excise Tax Refunds

Occurs when a person dealing with excisable goods manufactured in or imported into Kenya has paid excise duty.

The Commissioner shall, on application by the person, refund the excise duty paid if satisfied that

• Before being consumed or used in Kenya
• The goods have been damaged or stolen during the voyage or transportation to Kenya
• The buyer has returned the goods in accordance with the contract of sale.
• The excise duty paid in respect of spirits or illuminating kerosene that have subsequently been used by a licensed or registered manufacturer to manufacture un-excisable goods.

 1. Logon to itax.kra.go.ke by entering your KRA PIN and Password

2. On the iTax menu, select the tax obligation under the refunds menu

3. Confirm taxpayer details and click next

4. Fill in the taxpayer’s bank account details and click next

5. Select your refund type, the claim reason, the description of the reason for the claim, the amount, upload supporting documents then submit.

• Apply for claims via iTax within the stipulated period.
• All claims must have valid debt status reports before refund processing.
• All first-time claimants will be subjected to a pre-payment audit

Fraudulent/false claim of refund will attract a penalty of an amount equal to two times the amount of the claim.

CGT is tax levied on gains made from the transfer of property situated in Kenya whether or not the property was acquired before 1st January 2015.

The CGT rate was increased from 5% of the net gain to 15% of the net gain, effective 1^st January 2023.

The due date (referred to as Tax Point) for CGT is upon registration of the transfer  instrument in favor of the transferee

Yes. Capital gains tax is a final tax and is not subject to further taxation.

Capital Gains Tax is payable by the person who has transferred property (seller)

Yes. If the gain is derived from sale of property situated in Kenya then capital gains tax is payable. Unless there is double Tax Agreements guide on certain circumstances.

• Income that is taxed elsewhere as in the case of property dealers.
• Issuance by a company of its own shares and debentures.
• Transfer of property for the purpose only of securing a debt or a loan.
• Transfer by a creditor for the purpose only of returning property used as security for a debt or a loan.
• Transfer by a personal representative of any property to a person as beneficiary in the course of the administration of the estate of a deceased person.
• Transfer of assets between spouses or between former spouses as part of a divorce settlement or a bona fide separation agreement;
• Transfer of assets to immediate family or to a company where spouses or a spouse and immediate family hold 100% shareholding;
• A gain on transfer of securities traded on any securities exchange licensed by the Capital Markets Authority
• A private residence if the individual owner has occupied the residence continuously for the three-year period immediately prior to the transfer concerned subject to the provisos under Paragraph 36(c) of the First Schedule to the Income Tax Act, Cap 470.
• Property (being land) transferred by an individual where the transfer value is not more than three million shillings
• Property (being land) transferred by an individual is an agricultural property having an area of less than fifty acres where that property is situated outside a municipality, gazetted township or an area that is declared by the Minister, by notice in the Gazette, to be an urban area for the purposes of this Act
• Property (including investment shares) which is transferred or sold for the purpose of administering the estate of a deceased person where the transfer or sale is completed within two years of the death of the deceased or within such extended time as the Commissioner may allow in writing. Where there is a court case regarding such estate, the period of transfer or sale under this paragraph shall be two years from the date of the finalization of such court case.
• Property, including investment shares, which is transferred or sold for the purpose of transferring the title or the proceeds into a registered family trust.
• The transfer of title of immovable property to a family trust.

A transfer of property that is necessitated by a transaction involving the incorporation, recapitalization, acquisition, amalgamation, separation, dissolution or similar restructuring of a corporate entity, where such transfer is—

• a legal or regulatory requirement;
• as a result of a directive or compulsory acquisition by the government;
• an internal restructuring within a group which does not involve transfer of property to a third party; or
• in the public interest and approved by the Cabinet Secretary.

Transfer value less adjusted cost then tax at 15%. 

Follow this link and learn more on how to compute Capital gains tax.

Payment should be initiated online via iTax. Login to iTax >> Payments >> Payment Registration >> Tax head (Income tax), Sub head (Capital Gains Tax)

>> Enter the transaction details >> Submit. The modes of payment include cash, cheque or RTGS

In the olden days, Kenyan communities used to carry out tasks like harvesting, planting, hunting, fetching firewood and water jointly. This implied there was sharing of resources, thoughts and manpower to ensure efficiency was achieved in undertaking the said tasks.

The term Coordinated Border Management (CBM) refers to a coordinated approach by Border control agencies, both domestic and international, in the context of seeking greater efficiencies over managing trade and travel flows, while maintaining a balance with compliance requirements with their individual legal mandate

Prior to the establishment of CBM, Ministries, Departments and Agencies with border function faced a myriad of challenges, which included but not limited to;

• Working in silo
• In conflict and competition
• Suspicion/mistrust among themselves
• Feeling of superiority complex
• Overlapping mandates
• Hoarding of information
• Non sharing of resources
• Generally not embracing the whole of government approach in border management

Coordinated Border Management in Kenya was established through the enactment of the Security Laws (Amendment) Act of 2014 that established the Border Control and Operations Coordination Committee (BCOCC).

• To formulate policies and programmes for the management and control of Ports of Entry and Exit (PoEs)
• To coordinate the exchange of information between agencies responsible for the security and management of the borders at the designated ports of entry/exit
• Ensure compliance with standards by the respective agencies to ensure the effective and efficient management of operations at the designated ports of entry/exits;
• Exercise oversight authority over operations of the respective agencies at the Ports of Entry and Exit.