How KRA will tax 60pc of undeclared dividends

Mr Adan Mohamed, a former Cabinet Secretary, was sworn in as the new KRA Commissioner-General on May 20, 2026

Photo credit: Evans Habil | Nation Media Group

The Kenya Revenue Authority (KRA) will get powers to demand tax on 60 percent of unexplained retained earnings in the race to curb tax avoidance from non-payment of dividends.

The fresh powers to seek a piece of the retained earnings follow amendments to the Finance Bill, which has introduced a minimum share of 60 percent of unexplained retained earnings that the KRA can tap for withholding taxes.

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