Tax on Investment Returns Kenya — Net After WHT
Enter your gross interest earned, withholding tax rate, and management fee. We’ll show your net after-tax return, effective rate, and what the deductions actually cost you.
Tax on Investment Returns
See exactly how much withholding tax and fees eat into your returns.
Serrari provides educational tools — we are not financial advisors. Results are estimates based on the inputs you provide.
How the Tax on Returns Formula Works
Net Return
Gross Interest
Withholding Tax
Management Fee
In Kenya, the withholding tax on interest income is 15% for resident individuals and corporations. It is deducted at source — your bank, fund manager, or the Central Bank of Kenya withholds the amount before paying you. The management fee is charged by fund managers for administering your investment, typically ranging from 1% to 3% of gross returns.
Your effective annual rate equals Net Return divided by Principal divided by Years, multiplied by 100. A 12% gross rate with 15% WHT and 2% fee gives an effective rate of just 9.96% — that 2.04 percentage-point gap compounds over time. Compare gross yields across products using the Compare Options Calculator, or project your growth with the Compound Interest Calculator.
Kenya Investment Products — Gross vs Net After-Tax Yields (2026)
What you actually earn after 15% WHT and applicable management fees.
| Product | Gross Yield | Typical Fee | Net Yield (After WHT + Fee) |
|---|---|---|---|
| Money Market Funds | 8 – 12% | ~2% | 6.6 – 10.0% |
| Unit Trusts (Balanced) | 10 – 15% | ~2% | 8.3 – 12.4% |
| Treasury Bills | 14 – 17% | 0% | 11.9 – 14.5% |
| Treasury Bonds | 12 – 14% | 0% | 10.2 – 11.9% |
| Fixed Deposits | 6 – 10% | 0% | 5.1 – 8.5% |
| SACCO Savings | 8 – 14% | 0% | 6.8 – 11.9% |
| Equity Fund (Unit Trust) | 12 – 18% | ~2.5% | 9.9 – 14.9% |
Gross vs Net Return — Kenya Investment Scenarios
See how withholding tax and fees reduce your returns across different amounts and rates.
| Principal | Rate | Years | Gross Interest | Net Return | Eff. Rate |
|---|---|---|---|---|---|
| KES 100,000 | 10% | 1 | KES 10,000 | KES 8,300 | 8.30% |
| KES 500,000 | 12% | 1 | KES 60,000 | KES 49,800 | 9.96% |
| KES 1,000,000 | 9.4% | 1 | KES 94,000 | KES 78,020 | 7.80% |
| KES 250,000 | 16% | 1 | KES 40,000 | KES 34,000 | 13.60% |
| KES 1,000,000 | 14% | 2 | KES 280,000 | KES 232,400 | 11.62% |
| KES 500,000 | 10% | 3 | KES 150,000 | KES 124,500 | 8.30% |
| KES 2,000,000 | 12% | 5 | KES 1,200,000 | KES 1,002,000 | 10.02% |
| KES 5,000,000 | 10% | 5 | KES 2,500,000 | KES 2,075,000 | 8.30% |
Rows 1–3 and 5–8 assume 15% WHT + 2% management fee. Row 4 assumes 15% WHT + 0% fee (T-Bill). Compare investments head-to-head with the Compare Options Calculator
Tax on Investment Returns Kenya — FAQ
What is withholding tax on investment returns in Kenya?+
How do you calculate net return after tax in Kenya?+
What is the effective rate after withholding tax?+
Are Treasury Bills and Bonds subject to withholding tax in Kenya?+
What is the difference between gross return and net return?+
How can I reduce withholding tax on my investments in Kenya?+
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