What is the standard VAT rate in Kenya?

The standard VAT rate commonly used for many taxable goods and services in Kenya is 16%. Some supplies can be exempt or zero-rated.

What is the shortcut for removing VAT?

Divide the VAT-inclusive amount by 1.16 to get the amount before VAT.

How to Add or Remove 16% VAT in Kenya

Adding VAT to a price

To add 16% VAT to a VAT-exclusive price, multiply the base price by 0.16 to get the VAT amount, then add it to the base price.

For example, a VAT-exclusive price of KES 10,000 has VAT of KES 1,600 and a VAT-inclusive total of KES 11,600.

Removing VAT from an inclusive price

To remove 16% VAT from a VAT-inclusive price, divide the inclusive amount by 1.16. The VAT amount is the inclusive price minus the exclusive base.

This is useful when checking supplier invoices, receipts, quotes and eTIMS records.

When to confirm with KRA

Not every supply is standard-rated. Some items may be exempt, zero-rated or subject to special treatment, so filing and compliance decisions should be checked against KRA guidance.