Finance Bill 2024: Foreigners Working Remotely For Kenyan Employers Required To Register For KRA PIN

• Foreigners who work remotely for Kenyan companies could need to apply for a Personal Identification Number (PIN) from the Kenya Revenue Authority (KRA)
• This comes amid President William Ruto's push to widen the tax base to net more revenue to fund the 2024/2025 budget
• Tax expert Kipkemboi Rotuk explained that all resident and non-resident employees working for Kenyan employers were subjected to tax

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Foreigners working remotely for Kenyan employers must register for a Kenya Revenue Authority (KRA) Personal Identification Number (PIN) as President William Ruto seeks to widen the tax base.

The proposal is contained in the Finance Bill 2024, set to be debated by Members of Parliament (MPs).

"The bill proposes to include the registration of an employee working remotely outside Kenya for an employer in Kenya among the transactions for which a KRA PIN is required."

Will this result in double taxation?

Employment income earned by non-residents is subjected to Pay As You Earn (PAYE) in Kenya.

Tax expert Kipkemboi Rotuk explained that all resident and non-resident employees working for Kenyan employers were subjected to tax.

"It will not result in double taxation because the law already requires all employees, whether residents or not, to pay employment taxes on income derived from Kenya. The question is whether they intend to have any difference with private consultants, who form the bulk of remote working contracts subject to withholding tax," Rotuk told TUKO.co.ke.

Why foreign investors are exiting Kenya

Over 6,200 investors fled Kenya between January and September, representing 42% of the total foreigners.

FX Pesa lead market analyst Rufas Kamau told TUKO.co.ke that Kenya's unstable tax policies were scaring away foreign investors and leading to low government revenue collections.

"The super-rich people find comfort in a country with a stable taxation policy, a stable currency, and a growing economy. The current progress of the current administration is changing tax policy rapidly, mismanaging the currency, and weakening economic growth," Kamau said.

Other Finance Bill 2024 proposals

• Kenyans owning a car will have to pay 2.5% of the vehicle value, and those supplying goods to public entities will part with 3%-5%, among other taxes.
• The government has proposed introducing a 5% withholding tax on infrastructure bonds.
• It also proposes to raise the excise duty rate on fees for money transfer services provided by banks and other financial providers.

Proofreading by Nyambura Guthua, journalist and copy editor at TUKO.co.ke