Kenya VAT Guide for Nonresident SaaS and E-commerce
A practical guide for US SaaS and e-commerce companies selling into Kenya. Rates, registration thresholds, filing deadlines and e-invoicing status, pulled from the same data that powers our free tools.
Zero. All foreign suppliers of digital services to Kenyan consumers must register for VAT under the Digital Service Tax (DST) regime.
Filing frequency
Monthly
Do I need to register for VAT in Kenya?
Kenya charges 16% VAT on B2C digital services supplied by foreign providers under the VAT on Digital Marketplace Supply regulations, in force since April 2021. Registration is required from the first sale to a Kenyan consumer, with no threshold. A separate 1.5% Digital Service Tax (DST) on gross applied 2021-2022; the standalone DST was repealed in 2023 in favour of expanded VAT and the new Significant Economic Presence (SEP) tax.
B2C digital services (SaaS, streaming, online ads, online media): register for VAT through KRA's iTax portal from the first Kenyan consumer sale. Tax rate is 16% on the supply value.
B2B digital services to a VAT-registered Kenyan buyer: the buyer self-assesses VAT under reverse charge. Capture the buyer's PIN (Personal Identification Number, also used for businesses).
Significant Economic Presence (SEP) tax: separate 3% income tax on gross from 2024. Different obligation from VAT; both may apply.
Tax representative: not strictly required, though many sellers retain a Kenyan tax agent to handle iTax filings and KRA correspondence.
How to register
Kenyan VAT registration runs through the KRA iTax portal. Foreign suppliers register through a dedicated nonresident channel; the portal is English-language.
What you'll need: US tax ID (EIN), business legal name, expected Kenyan turnover, bank account details, description of digital services. PIN is issued during registration.
Typical timeline: Approximately 30 days from a complete application to KRA approval and PIN issuance.
Cost: Registration is free. Plan for KES 100,000 to KES 500,000 per year if you engage a Kenyan tax agent for monthly iTax filings.
Filing and deadlines
Foreign-supplier VAT returns are filed monthly through iTax, due by the 20th of the month following the tax period. Returns are filed in KES. There is no OSS overlap.
Local Kenya filing frequency: Monthly.
Return due: 20th of following month.
Payment due: Same as return.
E-invoicing status in Kenya
Status
Mandatory
Format
eTIMS (electronic Tax Invoice Management System)
Model
Pre-clearance
Scope
B2G + B2B + B2C
Go-live
2024-09-01 (all taxpayers, including non-VAT registered businesses)
eTIMS replaced TIMS; extended beyond VAT in 2024 , non-VAT businesses must also issue eTIMS invoices for expense deduction.
Common mistakes US SaaS makes in Kenya
Confusing DST with VAT. The standalone 1.5% Digital Service Tax was repealed in 2023. The 16% VAT regime continues, and a new 3% Significant Economic Presence tax (income tax) applies from 2024.
Waiting for a threshold. The Digital Marketplace Supply regulations apply from the first Kenyan consumer sale, not after a turnover threshold.
Treating B2B and B2C the same. B2B uses reverse charge; B2C is collected by the foreign supplier under the Digital Marketplace Supply regime.
Filing in USD. iTax returns must be in KES at the official KRA exchange rate.
Trusting Stripe Tax to handle Kenyan VAT. Stripe collects but you remain the supplier of record. KRA registration is still your obligation.
Not sure if you've crossed the Kenya threshold?
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