TYPE OF GOVERNMENT
Multi party democracy.
FORMS OF BUSINESS ORGANISATION
- Private or public limited liability company
- Joint Venture
- External Company (ie a branch of a foreign company)
- Partnership/limited partnership
- Sole trader
FORMATION OF A BUSINESS
Companies and external companies (branches) must be registered with the authorities in Nairobi.
A business generally has to register for various tax purposes, National Social Security Fund and National Hospital Insurance Fund. Business licences including trade licences are required for certain activities.
TAXATION
Tax is levied on income of any person (whether resident or not) which is deemed to have accrued in or was derived from Kenya. The resident corporate tax rate is 35%. In addition, there is a resident withholding tax of 7% of the amount of qualifying dividend payable. The non-resident withholding tax rate on dividends is 10% of the amount payable. The non-resident corporate tax rate is 42%.
