Invoice Requirements: Kenya → United States
🇰🇪Kenya freelancers billing🇺🇸United States clients — required fields, VAT treatment, and compliance rules.
Kenyan freelancers invoicing US clients must provide Form W-8BEN before receiving payment. Kenya and the US have no bilateral income tax treaty, so the default 30% US withholding rate applies to US-sourced income with no treaty reduction available. Services performed entirely from Kenya may not be US-sourced income — confirm this with the US client's tax adviser. Kenyan freelancers must also maintain KRA (Kenya Revenue Authority) compliance, including obtaining a PIN and declaring foreign-source income on annual returns.
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Provide Form W-8BEN to your US client before any payment to certify your non-US status — required even though no Kenya-US income tax treaty exists.Required
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The W-8BEN documents your foreign status for IRS purposes. It does not reduce withholding in the absence of a treaty but is still required by US payors for their own tax records. Without it, the payor must default to 30% withholding on all payments.
Kenya and the US have no income tax treaty; the default 30% US withholding rate applies to US-sourced income with no mechanism to reduce it via treaty claim.Required
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Income sourced entirely from services performed in Kenya may not qualify as US-sourced under IRS rules, which could mean withholding does not apply. However, classification is determined by the US client's tax adviser — do not assume exemption without written confirmation. Keep records showing services were performed from Kenya.
Kenyan freelancers must obtain a KRA Personal Identification Number (PIN) and declare all foreign-source income on the annual self-assessment return under the Income Tax Act (Cap. 470).Required
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Kenya taxes residents on worldwide income. Foreign-source service income is included in the annual self-assessment and taxed at the applicable graduated PAYE rates for individuals. Register for a KRA PIN via the iTax portal if you have not already done so.
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Invoice in USD; Kenyan residents must repatriate foreign currency earnings through CBK-licensed banks under the Central Bank of Kenya Act and the Foreign Exchange Act.
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Kenya allows residents to hold foreign currency accounts (FCY accounts) at commercial banks licensed by the Central Bank of Kenya. Earnings from abroad can be received directly into these accounts. Retain all remittance records for KRA annual return purposes.
State NET 30 payment terms on every invoice; this is the US standard and establishes the due date for follow-up and any dispute resolution.
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