Last updated: 11 October 2026 · Rates checked against: KRA — Individual withholding tax
Reviewed by Zia Shahid, Buzdy Banking Editor · Our methodology
In this guide
Kenyan banks deduct the tax on your interest before paying it, and for a resident individual that deduction is the end of the matter.
Bank interest for a resident individual is subject to withholding tax at 15%.
For qualifying interest this is a final tax — it does not need to be declared again in your annual return.
KRA lists qualifying interest among the cases where withholding tax is final.
The rate
Withholding tax on bank interest is 15%. The bank deducts it and remits it to KRA; what you receive is net.
Final, not an advance
KRA states that withholding tax is final when deducted in relation to qualifying interest. A resident does not declare that income again when filing the annual return, and does not get it back by filing.
What this page does not cover
Withholding tax in Kenya applies to a long list of payment types at different rates, and the treatment can differ for non-residents. This page is only about interest paid by a bank to a resident individual.
Frequently asked questions
Do I declare bank interest in my annual return?
For qualifying interest the withholding is final, so it is not declared again.
Can I claim it back?
No. A final withholding tax is not refundable through the return.
Is the rate the same for non-residents?
Treatment can differ for non-residents. Check KRA's withholding tax schedule for your status.
Who remits the tax?
The bank deducts and remits it; you receive the interest net.
Sources
This is information, not tax advice. The figures above were checked against the source named at the top of this page on 11 October 2026. Tax rules change, usually with each annual budget. For a decision about your own money, speak to a qualified tax adviser in your country.
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