This document is the Double Taxation Agreement (DTA) between the Government of the United Kingdom and the Government of the Republic of Kenya.

Key Information:
• Date Signed: 31 July 1973
• Amendments: Amended by a Protocol signed on 20 January 1976 and notes dated 8 February 1977
• Entry into Force: 30 September 1977
• Effective Dates:
– United Kingdom: From 1 April 1976 for corporation tax and from 6 April 1976 for income tax and capital gains tax
– Kenya: From 1976
• Purpose: Avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains

Taxes Covered:
• United Kingdom: Income tax, corporation tax, and capital gains tax
• Kenya: Income tax and graduated personal tax

Summary of Key Tax Articles and Rates:

Dividends (Article 11):
General rule: May be taxed in both States.
Maximum tax in the source State:
– UK Source to Kenya Resident: Tax on aggregate of dividend and tax credit shall not exceed 15%.
– Kenya Source to UK Resident: Tax shall not exceed 15% of gross amount if recipient is subject to UK tax.

Interest (Article 12):
General rule: May be taxed in both States.
Maximum tax: Shall not exceed 15% of the gross amount if paid to a resident of the other State who is subject to tax there.

Royalties (Article 13):
General rule: May be taxed in both States.
Maximum tax: Shall not exceed 15% of the gross amount if paid to a resident of the other State who is subject to tax there.

Management Fees (Article 14):
General rule: May be taxed in both States.
Maximum tax: Shall not exceed 12 1/2% of the gross amount of the management fees arising there.

Business Profits (Article 8):
General rule: Taxable only in the State of residence unless carried on through a permanent establishment in the other State.
Maximum tax: Profits attributable to the permanent establishment may be taxed in the other State.

Other Important Provisions:
• Permanent Establishment: Defined as a fixed place of business; includes a building site existing for more than six months.
• Elimination of Double Taxation (Article 26): Provides for the allowance of Kenya tax as a credit against UK tax, and also allows Kenya to deduct UK tax paid from Kenya tax on the same income.
• Personal Allowances (Article 27): Residents of Kenya are entitled to the same personal allowances for UK tax as non-resident British subjects, and vice versa for UK residents in Kenya.