The installment tax payable is the higher of the minimum tax (1% of turnover) or 30% of profit.

Installment Tax is paid in advance at four equal installments. It is paid before the year of income is over and before the accounts of the business are prepared to establish the actual tax payable. After the accounts of the business are prepared to establish the actual tax payable, any balance of tax payable should be paid on, or before, the last day of the 4th month following the end of year of income or the accounting period.

Exemptions for minimum tax entails the following:

1. Employment income;

2. Capital gains tax;

3. Income subject to withholding tax, including digital service tax, provided the tax payable at the end of the accounting period exceeds minimum tax payable;

4. Persons subject to residential rental income tax;

5. Persons exempted from tax under the Income Tax Act;

6. Persons engaged in the insurance business;

7. Persons engaged in the extractive industry(oil and gas industries);

8. Persons whose retail price is controlled by the Kenyan Government.