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Kenya Tax Information

16% VAT

VAT is 16%. Registration required above KES 5 million. KRA PIN required.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Kenya

KRA PIN
VAT registration
Client PIN
VAT (16%)
Total in KES

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

CashNet 14Net 30LPO terms

Payment Methods in Kenya

M-PesaBank TransferAirtel MoneyCardCash

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Kenya?

Kenya has 16% VAT. VAT is 16%. Registration required above KES 5 million. KRA PIN required.

What payment methods are common for contractors in Kenya?

Common payment methods in Kenya include: M-Pesa, Bank Transfer, Airtel Money, Card, Cash. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Kenya?

Your invoice should include: KRA PIN, VAT registration, Client PIN, VAT (16%). For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Kenya's VAT rate?

16%. Some goods are zero-rated (exports) or exempt (financial services).