Expense rules in Kenya.
All KRA rules: 16% VAT, mission allowances and VAT recovery rules in Kenya.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 16% | 100% reclaimable | KRA entertainment |
| Travel meals | 16% | 100% reclaimable | Per diem cap |
| Accommodation | 16% | 100% reclaimable | eTIMS required |
| Fuel | 8% | 100% reclaimable | Reduced rate |
| Train / SGR / flight | 16% | 100% reclaimable | Public transport |
| Taxi / Uber / Bolt | 16% | 100% reclaimable | E-receipt |
| Client gifts | 16% | Not deductible | KRA limit |
| Parking | 16% | 100% reclaimable | eTIMS |
eTIMS
Electronic Tax Invoice Management System.
Per diem
MNC standard.
Retention
KRA records: 7 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | KES 30/km | By company | Standard practice |
| Motorcycle / boda-boda | KES 15/km | By company | Reduced rate |
MNC practice
Private sector standard.
AA Kenya
AA Kenya reference rates.
Records
Date, destination, km.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Nairobi | KES 3,000 | KES 12,000 | KES 15,000 |
| Mombasa / Kisumu | KES 2,500 | KES 10,000 | KES 12,500 |
| Senior executive | KES 8,000 | KES 25,000 | KES 33,000 |
| Foreign — Dubai | KES 12,000 | KES 40,000 | KES 52,000 |
| Foreign — London | KES 25,000 | KES 80,000 | KES 105,000 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on eTIMS.
No statutory rate
No KRA cap.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Kenya → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | No reciprocity | — | No agreement |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| KE VAT for foreign | None | — | No mechanism |
No B2B refund
No B2B recovery procedure.
EPZ
Export Processing Zones exempt.
Outbound
KE company can recover EU VAT.
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16% VAT, eTIMS OCR, MNC per diem, multi-currency KES↔USD↔EUR↔CHF: all the KRA rules above are natively integrated into Illizeo.
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