Dividends & Returns
~3 min read
Tax on NSE Investments
Taxes You Should Know About
Understanding tax implications helps you plan better and keep more of your returns.
Current Tax Rules (Kenya)
- Dividend withholding tax: 15% for residents, 15% for non-residents (deducted automatically)
- Capital gains tax: Currently exempt for shares traded on the NSE
- Transaction levies: Small regulatory levies included in trading fees
Important Notes
- Tax rules can change. Always check with KRA or a tax advisor for current rates.
- The 15% dividend tax is automatically deducted before the dividend is paid to you — no action needed on your part.
- Keep records of your buy prices and dates. If capital gains tax is introduced in the future, you will need this information.