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Japanese Companies, Employees To Be Exempted From Paying Income Tax In Kenya

President Uhuru Kenyatta with Shizo Abe
President Uhuru Kenyatta with former Japan Prime Minister Shizo Abe. [PHOTO/ COURTESY]

The National Assembly has passed a motion to exempt Japanese companies and employees working in Kenya from paying income tax.

The notice for exemption was first issued by Treasury cabinet secretary Ukur Yatani in February 26, for Japanese nationals undertaking projects in Kenya.

Currently, Japan is undertaking at least 15 projects in Kenya worth over Ksh328 billion.

Among the projects being undertaken by Japanese contractors including Olkaria V Geothermal Power Development Project which cost Ksh66.9 billion and Ksh38.2 billion Mombasa Special Economic Zone Development Project.

Read: UNDP, Japan Offer Kenya Three Robots to Help in The Fight Against Covid-19

Others include the first and second phases of the Mombasa Port Area Road Development Project (Ksh29 billion) and the first phase of the Mombasa Port Development Project (Ksh22 billion).

Every company in Kenya is charged at 30 percent for income tax, whether local or foreign. The same is charged for highly paid employees.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email

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