Lesotho vs Kenya
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐ธ Lesotho โ Lesotho Tax System
Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa โ customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.
๐ฐ๐ช Kenya โ County & Local Authority Taxes
Kenya's 47 counties levy business permits (single business permit), property rates, and various local service charges. County governments have own-source revenue from markets, parking, land rates, and entertainment taxes. The Kenya Revenue Authority (KRA) administers national taxes. A housing levy of 1.5% of gross salary (employer+employee) was introduced in 2023. The digital service tax (DST) at 1.5% on digital marketplace revenues was replaced by a significant economic presence tax framework.
Lesotho vs Kenya: Key Tax Differences (2026)
๐ฐ Income Tax: Lesotho and Kenya have similar top income tax rates (0โ35% vs 10โ35%).
๐ VAT/Sales Tax: Kenya has a higher consumption tax (15% vs 16%).
๐ข Corporate Tax: ๐ฑ๐ธ Lesotho offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ฐ๐ช Kenya taxes investment gains at a lower rate (15% vs 25%), benefiting investors.