How Kenya’s indirect tax system works

Police engage protesters in running battles during anti-finance bill demonstrations along Kenyatta Avenue, Nairobi on June 18, 2024.

Photo credit: Sila Kiplagat | Nation Media Group

In the realm of taxation, governments often turn to various strategies to generate revenue while creating room for equitable distribution of the tax burden. One such strategy is indirect taxation, a system where taxes are levied on goods and services rather than directly on individuals or entities. 

In Kenya, indirect taxation is part of the fiscal policy that rakes in substantial revenue.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.