I recently started earning income from an online platform and realized I needed to pay Digital Service Tax (DST) in Kenya. At first, I wasn’t sure how it works or how to make the payment correctly.
If you provide digital services or run an online platform, here’s a simple guide to help you pay DST in Kenya.
Quick Answer
To pay Digital Service Tax, declare your income on iTax, generate a payment slip, and pay 1.5% of gross transaction value via bank or M-Pesa before the 20th of the following month.
What Is Digital Service Tax (DST)?
Digital Service Tax (DST) is charged on income earned from digital marketplaces or online services in Kenya.
👉 It applies to:
- Residents and non-residents
- Digital service providers
- Online marketplace operators
👉 Tax rate:
- 1.5% of gross transaction value
What Income Is Subject to DST?
DST applies to services such as:
- Streaming services (music, movies, podcasts)
- Online courses and e-learning
- App downloads and digital content
- Online marketplaces and commissions
- Website hosting and cloud services
- Online ticketing and booking platforms
- Data monetization and digital advertising
Step-by-Step: How to Pay Digital Service Tax in Kenya
Step 1: Log in to iTax Portal
Go to the official KRA iTax portal and log in.
Step 2: File DST Return
Declare your gross digital income earned.
Step 3: Confirm Tax Computation
The system will calculate:
- 1.5% DST automatically
Step 4: Generate Payment Slip
Create a payment registration slip.
Step 5: Choose Payment Method
Pay via:
- Authorized banks
- M-Pesa Paybill
Step 6: Complete Payment
Confirm payment and keep your receipt.
Important Deadlines for DST
- Payment due by 20th of the following month
- Applies to income earned in the previous month
Extra Tips and Best Practices
- Keep accurate records of digital transactions
- File returns monthly without fail
- Pay before deadline to avoid penalties
- Confirm tax calculation before submission
- Monitor your iTax account regularly
Common Mistakes to Avoid
- Filing late
- Under-declaring income
- Forgetting to pay after filing
- Miscalculating gross transaction value
- Ignoring DST obligations for online income
FAQ
What is the DST rate in Kenya?
The rate is 1.5% of gross transaction value.
Who should pay DST?
Both resident and non-resident digital service providers.
When is DST due?
By the 20th of the following month.
Conclusion
Paying Digital Service Tax in Kenya is straightforward once you understand the process. Just file your returns on iTax, generate a payment slip, and pay on time to stay compliant.
