Kenya VAT Rate Finder
Find the correct KRA VAT rates for your business. Select your business type, revenue range, and product categories to see which VAT rates apply, whether you need eTIMS, and how to configure your POS.
Based on the Kenya Value Added Tax Act (2013) and KRA eTIMS requirements as of March 2026
Step 1: Select Your Business Type
Frequently Asked Questions About Kenya VAT Rates
What is the standard VAT rate in Kenya?
The standard VAT rate in Kenya is 16%, applied to most goods and services. Some items are zero-rated (0%) such as fresh food, agricultural inputs, and exported goods. Other categories like medical services, education, and financial services are VAT-exempt.
Which products are zero-rated for VAT in Kenya?
Zero-rated items in Kenya include: unprocessed food (fresh milk, eggs, vegetables, fruits), maize flour, ordinary bread, agricultural inputs (seeds, fertilisers, pesticides), exported goods, books and educational materials, and animal feeds. These attract 0% VAT but sellers must still file VAT returns.
What services are VAT-exempt in Kenya?
VAT-exempt services in Kenya include: medical and healthcare services, education and training, financial services (banking, insurance, M-Pesa), public transport by road or rail, and rental of residential property. Businesses providing exempt services cannot charge VAT and cannot claim input VAT credits.
When must a Kenyan business register for VAT?
A business in Kenya must register for VAT if its annual taxable turnover exceeds KES 5 million. Businesses below this threshold can voluntarily register for VAT if they wish to claim input tax credits on their purchases. VAT registration is done through the KRA iTax portal.
What are KRA HS codes and why do they matter for my POS?
KRA Harmonised System (HS) codes are standardised classification codes used to identify products for tax and customs purposes. Under eTIMS, every item on an invoice must have a correct HS code. Your POS system should be configured with the right HS codes for each product to ensure eTIMS compliance and correct VAT classification.
Do I need eTIMS if my turnover is under KES 5 million?
Yes, in most cases. KRA has progressively expanded eTIMS requirements beyond VAT-registered businesses. As of 2026, businesses with turnover above KES 1 million are expected to register for eTIMS. Even businesses below this threshold may need to register as KRA continues to expand enforcement.
How do I handle products with different VAT rates in my POS?
Your POS system should be configured to assign the correct VAT rate to each product or service in your catalog. For example, a supermarket selling both fresh vegetables (0%) and processed snacks (16%) needs each item tagged with its correct rate. EliteTeQ POS supports mixed VAT rates and automatically applies the correct rate at checkout.
What is the difference between zero-rated and VAT-exempt?
Zero-rated items attract 0% VAT, but the seller is still registered for VAT and can claim input tax credits on purchases. VAT-exempt items are not subject to VAT at all — the seller cannot charge VAT and cannot claim input VAT credits on related purchases. This distinction affects your cash flow and tax planning significantly.
Related Tools and Resources
Need a POS That Handles VAT Automatically?
EliteTeQ POS applies the correct VAT rate to every product, generates eTIMS-compliant invoices, and files your monthly VAT data automatically. Set it up once and stop worrying about tax classification.