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Kenya Taxes for US Expats: What You Need to Know

Kenya taxes for US expats depend on residency status, income sources, and tax treaties. While US citizens must file Form 1040, they may qualify for exclusions, credits, or treaty benefits to reduce double taxation.

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U.S. Expat Tax Deadline

15th June

Expat Tax Deadline

For U.S. expats, the automatic tax filing extension deadline is June 16th in 2025. If more time is needed, filing Form 4868 before this date extends the deadline to October 15th. The FBAR must also be submitted by October 15th. Certain special cases may qualify for an additional extension until December 15th.

Kenya

How Kenya Taxes US Expats

Kenya taxes for US expats depend on whether an individual is a resident or non-resident. Kenya’s tax rate ranges from 10% to 30% for individuals. Living in Kenya as an American, you must also comply with US tax obligations, including filing Form 1040 and reporting foreign assets.

Tax Requirements

Tax Residency in Kenya

Expats staying 183+ days per year are tax residents and taxed on worldwide income.

Non-Resident Taxation

Non-residents are taxed only on Kenyan-sourced income.

Kenya Income Tax Rates

Progressive tax rates from 10% to 30% based on income level.

Capital Gains Tax

15% flat tax on gains from asset sales, including real estate and shares.

Value-Added Tax (VAT)

Standard 16% VAT applies to most goods and services.

U.S. Federal Tax Return (Form 1040)

US expats in Kenya must report global income to the IRS.

Foreign Earned Income Exclusion (FEIE)

Exclude up to $120,000 of foreign-earned income if eligible.

Foreign Tax Credit (FTC)

Offset US tax liability with Kenyan taxes paid.

US-Kenya Tax Treaty

Kenya has no formal US-Kenya tax treaty, but FTC and FEIE can help reduce double taxation.

Key Tax Insights

Tax Facts for US Expats in Kenya

US expats in Kenya are subject to both Kenya’s tax system and US tax laws, but exclusions and credits can help manage double taxation.

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Kenya’s Tax Residency Rules

Expats staying 183+ days annually are considered Kenyan tax residents and taxed on worldwide income.

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Kenya’s Progressive Tax Rates

Kenya’s tax rate ranges from 10% to 30% based on annual income.

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US Expats Must File IRS Returns

US expats in Kenya must file Form 1040 and report all foreign income and bank accounts.

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    FAQs

    We Have All Your Queries Covered

    Have questions about your U.S. expat state taxes? We’re here to help. Below are answers to some common queries we encounter from expats around the world.

    Do US expats in Kenya pay taxes in both countries?

    Yes, US expats in Kenya must file Kenyan tax returns and US tax returns, but FTC and FEIE can help prevent double taxation.

    Kenya’s tax rate is progressive, ranging from 10% to 30%, depending on income, which is good news for Americans living in Kenya.

    No, there is no formal US-Kenya tax treaty, but Foreign Tax Credit (FTC) helps offset taxes paid in Kenya.

    Yes, if classified as Kenyan tax residents, they pay income tax on worldwide earnings.

    No, US Social Security benefits are not taxed in Kenya.

    Yes, US citizens must file an FBAR if their foreign bank accounts exceed $10,000 at any time.

    Still have questions? Contact us today to get expert guidance on all your U.S. expat state taxes.

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