Nairobi to Mumbai: India's 2024-26 Tax Changes for Kenyan Indians
TL;DR
Kenya's Indian community runs businesses across Nairobi, Mombasa, and Kisumu. Your India-Kenya DTAA caps interest and dividends at 10%. India rewrote four other rules.
TrustNRI Editorial · Reviewed by ICAI-registered Chartered Accountants
Kenya's Indian roots
The Indian community in Kenya is multi-generational, concentrated in Nairobi, Mombasa, and Kisumu. Many families have had Indian investments and property for 2-3 generations. The India-Kenya DTAA (revised in 2016) caps interest at 10% and dividends at 10%. Unchanged in 2024-26.
KRA (Kenya Revenue Authority) issues tax residency certificates through the iTax portal. Process is digital and takes about 2-4 weeks.
Budget 2024 changes the Nairobi-Indian property math
**Section 148** reopening cut to 3/5 years. September 2024.
**Faceless mandate**. JAO 148 notices are void per Supreme Court (July 2025).
**Budget 2024** 12.5% flat LTCG, no indexation, on NRI property from 23 July 2024.
**Black Money Act safe harbour** ₹20L for movable foreign assets, 1 October 2024 (Finance (No. 2) Act 2024 amendment).
For Kenyan-Indian families with long-held Indian property, Budget 2024's indexation removal is the biggest shift. Run the old-vs-new math before selling.
The KRA-to-Indian-CA handoff that actually works
Kenya Revenue Authority issues TRCs through iTax in about 2-4 weeks. You'll need your PIN (Personal Identification Number) and an active tax file. Once the TRC lands, your Indian CA uses it to file Form 10F / Form 41 and claim the treaty rates on your ITR.
For multi-generational Kenyan-Indian families holding Indian property from the 1970s or 1980s, Budget 2024's removal of indexation is the biggest 2024-26 change. A property bought in 1985 for ₹2 lakh and sold in 2026 for ₹2 crore now pays 12.5% on ₹1.98 crore flat, roughly ₹25 lakh. Under the old 20%-with-indexation rule the same sale would have paid closer to ₹8-10 lakh. Run the math before you list.
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