Section 3(1) of the ITA created a tax known as income tax, which shall be charged for each year of income upon all the income of a person whether resident, or non-resident, which occurred in or was derived in Kenya. Subsection 2 identifies the source of this income as;
a)      Gains and  profits from:
           -A business for whatever period carried on
           -Employment or services rendered
           -A right granted to another for use or occupation of property.

b)   Dividends/ Interests
c)   -Pension charge or annuity
      -Any withdrawals from a registered pension fund or a registered provident fund or              
        A registered provident fund or a registered individual retirement fund.
      -Any withdrawals from a   registered home ownership savings plan.

d)  An amount deemed to be the income of a person under the Act or rules there under
e)  Gains accruing in terms of the 8th schedule which relates to accruals and
     Computations of gains from property other than investment shares.
f)       Capital gains relating to property acquired before 1st January 1975 and transferred
Before 13th June 1985;
Section 3(1)
1) Each year of income
2) Upon all the income- what does income mean?
3) Who is a person?
4) Whether resident or non-resident. What does residency entail?
5) Which accrued in or derived in Kenya.


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