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How 15pc global tax affects Kenyan firms
The idea behind the Minimum TopUp Tax stems from the Organisation for Economic Co-operation and Development (OECD’s) global minimum tax initiative, also known as Pillar 2, which aims to stop the long-running “race to the bottom” in corporate tax rates.
Kenya has joined over 140 countries in implementing a global 15 percent minimum corporate tax rate on large multinational groups.
Starting from January 1, 2025, a Kenyan taxpayer that is part of a multinational enterprise (MNE) group with a consolidated global turnover above 750 million euros will be required to pay a “top-up tax,” formally known as the Qualifying Domestic Minimum TopUp Tax.
