Tax on Dividends and Interest Calculator Kenya 2026

Investment income is taxed at source

Most income from savings and investments in Kenya is taxed by withholding tax. The bank, SACCO, fund manager or company pays you the income after deducting the tax and sends it to KRA. For a resident individual, that tax is usually final: you do not add the income to your salary or business profit, and you pay no further tax on it. This makes savings income simple, but it also means the tax is applied at the rate for each type of income, without taking account of your personal tax band.

The income types covered

The calculator uses the rates held for this site for these types:

• Bank deposit interest, taxed at 15%.
• Money market fund interest, taxed at 15%.
• Treasury bond interest for bonds of under ten years, at 15%.
• Infrastructure bond interest for bonds of ten years or more, at 10%.
• Dividends paid to residents, including SACCO dividends, at 5%.
• Dividends paid to non-residents, at 15%.

How the calculator works

Choose the type of income, enter the gross amount, and the calculator shows the tax withheld and the amount you receive. The tax is calculated on the gross amount before any charges the institution adds.

A worked example

On KES 100,000 of money market fund interest, the tax withheld is KES 15,000.00 and you receive KES 85,000.00. Resident dividends of the same amount attract tax of KES 5,000.00.

SACCOs

SACCO members receive dividends on their share capital and sometimes interest on deposits. Their tax treatment can differ, and the way the SACCO describes the payment matters. Your SACCO should show the gross payment, the tax withheld and the net amount on its statement. If you are unsure, ask the SACCO which category applies. This calculator treats SACCO dividends as resident dividends and does not decide how your SACCO classifies a payment.

Unit trusts and money market funds

The tax on a money market fund is often taken inside the fund, and the return you see on your statement may already be after tax. Check the fund's fact sheet to see whether yields are quoted before or after tax, so you compare like with like.

Exemptions and special cases

Some income is exempt, for example interest on certain bonds issued with a tax exemption, and some payments to pension funds and approved institutions are treated differently. Rates have been changed more than once, so use the date box to check an earlier period. The calculator does not apply exemptions.

Do I need to file?

If all your investment income had final withholding tax, you generally do not need to include it in your annual return as taxable income, but you may be asked to declare it. If you also have a business or rental income, you must still file a return for those. Keep your statements, because they are your evidence of the tax withheld.

This calculator is an estimate for information only. Confirm the treatment of your income with your institution or a tax adviser.

Comparing after-tax returns

When you compare savings options, use the after-tax figure. A money market fund quoted at a yield before tax delivers less than a product whose published rate is already net, and a fixed deposit's interest is reduced by withholding tax when it is paid. Dividends from shares and SACCOs carry a lower rate than interest, though they carry more risk and depend on profits. Use the calculator with the same amount for different instruments to see how much tax each leaves you paying, then weigh that against liquidity, safety and fees.

Keep a note of every payment you receive, with the date, the gross amount and the tax withheld. At year end, add them up so that you can compare your total with the certificates your institutions issue, and to see what your savings really earned after tax.

Guides, tools and templates for this topic

Read next: VAT for small businesses in Kenya: when to register and what to charge, Turnover tax for small businesses in Kenya: rate, limits and when to use it, The KRA filing calendar for small businesses: every monthly and yearly deadline

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