Call Us

The Basics of Branch Taxation in Kenya

Related

Registering a Foreign Company

Step-by-Step Process for Registering a Branch of a Foreign Company in Kenya

A branch is a local office or division of a larger company that operates under the parent organization’s name and brand. Branches are typically located in different geographical areas and exist to extend the reach and operations of the parent company. They have limited autonomy and are closely controlled by the headquarters.

After successfully registering a Branch of a foreign company, and being issued a Certificate of Compliance, the next step is to register with the Kenya Revenue Authority (KRA) to procure a PIN certificate.

The next step before the branch starts to operate is to register for all applicable tax obligations to facilitate filing tax returns and making the subsequent payments. 

We have summarized the key tax obligations that a branch is typically exposed to. 

Income Tax

Currently, in effect to the provisions of the Finance Act 2023, income generated by a branch of a foreign company in Kenya is subject to a 30%  income tax from the previous 37.5%. 

Repatriated income is the proceeds earned by multinational organizations operating in a foreign jurisdiction (Kenya) and transferred to their home country. The tax rate for repatriated profit is also currently 30%.

How we can help you.

In the case of a branch that has already registered to operate in Kenya, we will assist you with issues related to:

  • Tax advisory
  • Tax planning
  • Tax Preparation
  • Tax compliance 
  • Outsourced accountancy. 

Leave a Reply

Your email address will not be published. Required fields are marked *

If You Have Any Questions, Feel Free to Call Us +(254) 715 008 008.

We offer effective accounting solutions, and if you are a start-up, you just came to the right place because we have a package deal of business strategies to take you where you envision. 

Let's Get Started
Looking for affordable QuickBooks?

We are Quickbooks Online ProAdvisor

Us On Socials

Facebook Instagram Youtube Linkedin Tiktok

2023 G.K Nahashon & Company. All Rights Reserved.

Jackie.W. Murage

Associate- Corporate Services

As an Associate-Corporate Services, Jackline leads client relations, helping organizations develop strong corporate strategies. She brings relevant experience in the role of helping clients develop and implement corporate goals and objectives, formulate corporate strategies around their capital resources, achieve optimal strategic mix, and sustain a healthy risks-return balance.

Jackline holds a Bachelor’s Degree in Business Management; Finance and Banking from Maasai Mara University

Diana Kiarie

Manager- Accounts and Financial Reporting

Diana serves as the Manager of Accounts and Financial Reporting and holds a Bachelor’s degree in Commerce with a specialization in Accounting from Mount Kenya University. Additionally, she possesses a diploma in Business Management from the University of Nairobi. Currently pursuing CPA
Advanced Level, Diana has over five years of experience in finance, accounting, audit, and taxation for the firm, significantly enhancing strategic financial management activities.

CPA Gitau Nahashon

Senior Managing Partner

CPA Gitau Nahashon is an accomplished finance and accounting professional with over 21 years of experience in the fields of accounting, tax, audit, advisory, corporate governance, and business consultancy. Nahashon is the founding partner of GK Nahashon & Company, a rapidly growing medium-sized audit firm located in Rosslyn, Limuru Road.

He is a member of the Institute of Certified Public Accountants of Kenya (ICPAK), Kenya Institute of Management (KIM), and the Institute of Internal Auditors Kenya Chapter (IIA). CPA Nahashon is a passionate accountant, financial analyst, tax litigant, and advisor as well as corporate finance advisor. All this emerges from his background of Bachelor of Commerce, Finance, and Accounting as well as his professional training as a Certified Public Accountant (CPA-K) coupled with his many years of hands-on experience. He is a licensed practicing auditor and consultant with the Institute of Certified Public Accountants of Kenya. He is an MS Excel enthusiast having trained several high-ranking finance professionals in financial modeling, forecasting, and reporting using sophisticated Excel functions and formulae.

CPA Nahashon is a certified QuickBooks pro advisor, a position he uses to offer support in QuickBooks online as well as advise clients on the usage of QuickBooks for their accounting, payroll, and inventory management. This certification increases the confidence that clients have in our expertise in automated accounting software.

CPA Nahashon is extremely zealous of compliance, he has worked for several employers and private clients shepherding them to remain compliant with the regulations, policies, and guidelines of various regulators. As a risk and compliance professional, CPA Nahashon has brokered many deals and structured compliance highways for many organizations.

CPA Nahashon has enjoyed a thriving career in the private sector where he served in various capacities within the manufacturing, real estate, educational, and banking sectors. His major accomplishments include overseeing effective system migration, automation of MIS, conducting gap analysis for new CBK guidelines, successful acquisition structure, corporate governance training, financial reporting, training advanced MS Excel, successful audit engagements, setting up a successful microfinance company, several successful funding proposals among others.

This professional accountant has held the hands of many start-ups until they are mature with huge turnovers. He has mid-wifed micro enterprises to become medium-sized entities some of them with balance sheet of over Kshs 1B. He has successfully transitioned chamas to birthing enterprises that are current industry and market leaders.

He has served in various boards of academies, schools, SME’s and serves in advisory board of a thriving business in the service industry. He is currently a board chairman in one of the SME’s he serves as an independent director. He is an astute leader with impeccable people leadership skills and serves the community in several leadership positions transforming lives and offering hope to the destitute.