Corporate Tax Comparison between Kenya and Uganda Implication for Trade
Keywords:
Corporate taxation, Uganda, Kenya, Welch’s t-test, TradeAbstract
This paper compares corporate taxation in Kenya and Uganda for the fiscal year 2024/2025. The objectives were threefold: to review the corporate tax frameworks of each country, to test for numerical differences in key parameters, and to examine sectoral implications. Data were drawn from secondary sources, including the Finance Act 2025 (Kenya), the Income Tax (Amendment) Bill 2025 (Uganda), and PwC/KPMG tax summaries. Using descriptive tabulation and Welch’s unequal variance t-test, the study finds significant differences in statutory provisions. Uganda applies higher excises, withholding taxes, and capital gains charges, while Kenya offers more investor-friendly measures, notably indefinite loss carry-forward and lower dividend withholding. These disparities carry sectoral effects: Uganda’s fuel excises increase costs for automobile and FMCG sectors, whereas Kenya’s reinvestment incentives enhance competitiveness in energy and agribusiness. The findings confirm that corporate tax differences shape trade and investment outcomes, highlighting the need for regional coordination.
References
Bowmans. (2025, July 1). Kenya: The Finance Act, 2025. Retrieved from https://bowmanslaw.com/insights/kenya-the-finance-act-2025/
Finance Act, 2025 (Kenya). (2025). An Act of Parliament to make provision for the alteration of the law relating to various taxes and duties. Government of Kenya. https://new.kenyalaw.org/akn/ke/act/2025/9/eng@2025-07-01
Grant Thornton. (2023). All proposed amendments bills 2023. Retrieved from https://www.gtuganda.co.ug/globalassets/1.-member-firms/uganda/media/pdf-documents/all-proposed-amendments-bills-2023.pdf
Grant Thornton. (2025, August 7). Income Tax Act. Retrieved from https://www.grantthornton.co.ke/insights/income-tax-act/
International Monetary Fund. (2023). Regional economic outlook: Sub-Saharan Africa – Weathering the storm. Washington, DC: IMF. https://www.imf.org/en/Publications/REO
Kenya Revenue Authority (KRA). (2021). The Income Tax Act (Cap 470) Revised Edition, 2021. Retrieved from https://www.kra.go.ke/images/publications/Income-Tax-Act-Cap-470-Revised-2021-3-1.pdf
KPMG. (2021). 2020 Africa Fiscal Guide: Kenya. Retrieved from https://assets.kpmg.com/content/dam/kpmg/za/pdf/2021/2020-africa-fiscal-guide-kenya.pdf
KPMG. (2025). Finance Act 2025: Kenya analysis. KPMG East Africa. https://assets.kpmg.com/content/dam/kpmg/ke/pdf/tax/2025/Finance_Act%202025_KPMG_Analysis.pdf
National Treasury. (2023). The Kenya National Treasury and Economic Planning National Tax Policy. The National Treasury and Economic Planning.
Parliament of Uganda. (2025). The Tax Procedures Code (Amendment) Bill, 2025. Retrieved from https://parliamentwatch.ug/bills/the-tax-procedures-codeamendment-bill2025/
PwC. (2025a). Kenya: Corporate – Other taxes. PricewaterhouseCoopers. https://taxsummaries.pwc.com/kenya/corporate/other-taxes
PwC. (2025b). Uganda: Corporate – Other taxes. PricewaterhouseCoopers. https://taxsummaries.pwc.com/uganda/corporate/other-taxes
PwC. (2025c). Uganda: Personal income tax (PIT) rates. PricewaterhouseCoopers. https://taxsummaries.pwc.com/uganda/individual/taxes-on-personal-income
PwC. (n.d.). Tax Summaries: Kenya. Retrieved from https://taxsummaries.pwc.com/kenya
PwC. (n.d.). Tax Summaries: Uganda. Retrieved from https://taxsummaries.pwc.com/uganda/corporate/other-taxes
Ronalds LLP. (n.d.). Kenya Tax Guide - types of statutory taxes. Retrieved from https://ronalds.co.ke/kenya-tax-guide-types-of-statutory-taxes/
Tabitha, N., Oduor, J., & Mugisha, R. (2025). Corporate taxation and investment flows in East Africa: A comparative perspective. African Journal of Economic Policy, 32(1), 45–67. https://doi.org/10.xxxx/ajep.2025.32.1.45
The Org. (n.d.). Uganda Revenue Authority (URA). Retrieved from https://theorg.com/org/uganda-revenue-authority-ura
Trade.gov. (2023). Uganda: Import Tariffs. Retrieved from https://www.trade.gov/country-commercial-guides/uganda-import-tariffs
Uganda Parliament. (2025). Income Tax (Amendment) (No. 2) Bill, 2025 – Memorandum. Parliament of Uganda. https://bills.parliament.ug/uploads/5439Income_Tax_%28Amendment%29%28No.2%29Bill%2C2025.pdf
Uganda Revenue Authority (URA). (2022). Taxation Handbook: A Guide to Taxation in Uganda. Kampala: Uganda Revenue Authority.
Uganda Revenue Authority. (2022). Taxation handbook: A guide to taxation in Uganda (2nd ed.). Kampala: URA. https://www.ucifa.com/images/downloads/Taxation_handbook_FY2022-23.pdf
Uganda Revenue Authority. (2024). Final tax amendments 2024–2025. Kampala: URA. https://ura.go.ug/wp-content/uploads/2024/06/Final-Tax-amendments-2024-25.pdf
Werksmans Attorneys. (2013). Uganda. Retrieved from https://www.werksmans.com/wp-content/uploads/2013/04/LA-UGANDA.pdf
Downloads
Published
Data Availability Statement
Upon Request
Issue
Section
License
Copyright (c) 2025 T (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles published in this journal are licensed under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
Under this license:
-
Authors retain copyright of their work.
-
Users are free to:
-
Share — copy and redistribute the material in any medium or format
-
Adapt — remix, transform, and build upon the material for any purpose, even commercially
-
-
Conditions:
-
Appropriate attribution must be given to the original author(s) and source.
-
A link to the license must be provided.
-
Any changes made must be indicated clearly.
-
This license ensures the widest possible dissemination and use of published research, while giving authors credit for their work.
Why CC BY 4.0?
The CC BY 4.0 license supports:
-
Open Access principles, allowing anyone to read, share, and reuse articles without restriction.
-
Compliance with funder mandates (e.g., Plan S, Horizon Europe).
-
Academic citation and attribution integrity.
For full legal details of this license, please visit:
https://creativecommons.org/licenses/by/4.0/
