The Kenya Income Tax Act commenced on 1st January 1974 after the
dissolution of the East African Community Management Act. Upon formation
of the Kenya Revenue Authority on 1st July 1995, Income Tax was
absorbed as a department of the Authority. The Commissioner of Income
Tax who is appointed by the Minister for Finance heads the department.
The Income Tax Law is contained in the Income Tax Act, chapter
470 of the laws of Kenya, which has the principal legislation with
schedules and subsidiary legislations.
Income tax is a direct tax that is imposed on income derived from
Business, Employment, Rent, Dividends, Interests, and Pensions among
The principle law of the Income tax act has 14 parts and 133 sections;
and 13 schedules. It also contains subsidiary legislation on rules,
which govern the operations of the Local Committee, Tribunal, High
Court, PAYE e.t.c