VAT Calculator Kenya (16%)

Kenya has one positive VAT rate, 16%, and a zero rate. The 8% rate on petroleum products ended on 1 July 2023, so fuel now carries 16% like other taxable goods.

Zero-rated supplies are listed in the Second Schedule to the VAT Act, 2013 (Cap. 476). They include exports of goods and services, supplies to export processing zone and special economic zone businesses, and international air passenger transport. A zero-rated seller still charges 0% on its invoices and can claim back VAT on its costs; KRA's service charter targets 120 days for refunds that need no audit and 180 days for audited claims.

Exempt supplies, listed in the First Schedule, carry no VAT and give no right to reclaim input VAT. They include most financial and insurance services, education by schools, colleges and universities, medical, dental and veterinary services, passenger transport other than international flights and hired or chartered vehicles, and the sale or letting of land and residential premises. From 1 July 2026 the Finance Act 2026 added scrap metal, dialyzers and inputs for making pharmaceutical products to the exempt list. When your supplies switch from taxable to exempt, the VAT you claimed on stock still unsold must be paid back in that period's return (new section 17A).