Employment income subject to tax is determined by the residency status of the employee and where he was recruited from:

• A resident is liable to tax on worldwide employment income (s.2).


• A non resident is taxable on income which accrues in or is derived from Kenya (s.3(1))


• A person is Resident in Kenya where;
  
  
  1. they have a permanent home in Kenya and
  
  
  2. are in Kenya even for a single day in the tax year (calendar year).
• or Do NOT have a permanent home in Kenya and but are in Kenya for
  
  
  1. 183 days or more in aggregate during the current tax year
  
  
  2. more than 122 days per year in the current tax year and the two preceding years
• The Income Tax Act does not define what constitutes a permanent home for the purposes of determining residency. This creates a serious ambiguity and may lead taxpayers to wrongly conclude on their residency status.