This is the first-ever income tax treaty between the two countries.
The Czech Republic and Kenya signed an income tax treaty on 23 September 2025.
The agreement aims to eliminate double taxation of income and prevent tax evasion between the two countries.
The treaty addresses Czech taxes on personal income and corporate income. It also encompasses Kenyan income tax imposed under the rules of the Income Tax Act.
It provides for a 10% withholding tax on dividends and a 12% rate on interest, royalties, and fees for technical services (including managerial, technical, or consultancy services). However, interest is exempt from withholding tax if it is paid to the government, central bank, or a government-owned or controlled institution of the other contracting state, or in connection with a loan or credit guaranteed by any of these entities.
The agreement stipulates that both countries will generally use the credit method to eliminate double taxation, but allows the exemption method to apply where permitted under a Contracting State’s domestic laws.
The treaty will enter into force upon the exchange of ratification instruments and will apply from 1 January of the following year.
This follows after Officials from the Czech Republic and Kenya announced the conclusion of negotiations for a first-ever income tax treaty between the two countries on 22 January 2025.
