Employment income is covered under Section 5 of the Income Tax Act.


  • It is taxable in the year in respect of which it is received or accrued.
  • Tax year for individuals runs from 1 January to 31 December.
  • Chargeable income: for resident and non-resident Accrued in or derived from Kenya.
  • “Employer” includes any resident person responsible for payment of, or on account of, emoluments to an employee.
  • “Employer” also includes an agent, manager or other representative so responsible in Kenya on behalf of a non-resident employer.

In determining whether one is employed or self-employed, the following factors are considered:

The key is in ‘Substance over form’. Mutual obligations; Integration; Control; and Equipment.

Contract of employment or for employment.