Kenya introduced a dedicated digital nomad permit on 1 October 2024 through Legal Notice No. 155 of 2024, and the Directorate of Immigration Services began accepting applications under it in April 2025. Class N, as it is formally known, gives remote workers, business representatives of foreign companies, and self-employed professionals serving overseas clients a legal route to live in Kenya while continuing to work for employers or clients based abroad. It is a genuinely new option, and the published guidance on it is thinner than for Kenya’s longer-established permit classes, which makes it easy to misjudge both the qualifying criteria and the tax consequences of holding one.
Who Qualifies for Class N
The Directorate of Immigration Services’ own guidance sets out three categories of eligible applicant: a person working remotely under an employment contract with a company registered outside Kenya; a shareholder or business representative of a foreign entity; or a self-employed person providing services to clients based overseas. In every case, the work itself must be for a foreign employer or foreign clients. Class N does not authorise local Kenyan employment, and an applicant must not otherwise fall into a prohibited immigration category.
A point worth stating up front: the sources do not line up on income. The Directorate’s information pack states no minimum amount and asks for three months of bank statements or payslips. The consolidated Kenya Citizenship and Immigration Regulations, 2012, as amended by Legal Notice No. 155 of 2024, set out the qualifying criteria for Class N, including an assured annual income of USD 55,000 from sources outside Kenya and an undertaking not to work for a Kenya-domiciled employer. Plan on meeting the regulatory figure and confirm with the Directorate before applying.
Application Process, Fees and Duration
Applications are made through the government’s eFNS portal, using the same Single Sign-On system as other permit classes. The applicant completes Form 25 online, generates an invoice, and pays by card or mobile money, or submits the application in person at Nyayo House in Nairobi. The required documents include the completed form, two recent passport photographs, a copy of a valid passport, current immigration status documentation if already in Kenya, a signed cover letter from the applicant, a signed cover letter from the employer or company, three months of bank statements or payslips, proof of accommodation, and a letter of no objection from the applicant’s home country embassy in Kenya.
According to the Directorate of Immigration Services information pack, the permit costs a non-refundable processing fee of USD 200, plus an issuance fee of USD 1,000 per year of validity. It is issued for one or two years and is renewable. Class N sits alongside three other permit classes listed with it in the same programme of new permit classes: Class P for diplomatic and United Nations personnel, Class Q for non-preaching professionals working in faith-based or charitable institutions, and Class R for East African Community citizens, who are not charged a fee at all.
The Tax Question Most Digital Nomad Guidance Ignores
A Class N permit is an immigration status. It does not change your tax status, and nothing in the Income Tax Act, Cap. 470, exempts Class N holders from Kenyan tax. Kenyan tax follows residence, not the permit.
Under section 2, an individual is resident if they have a permanent home in Kenya and were present in Kenya for any period in the year of income. If they have no permanent home in Kenya, they are resident if they were present for 183 days or more in the year, or were present in that year and each of the two preceding years for periods averaging more than 122 days a year. Meeting any one of these routes is enough. For a resident, section 5(1)(a) deems employment income to accrue in or be derived from Kenya, whether it is earned in Kenya or outside it. A resident Class N holder paid by a foreign employer is therefore within Kenyan tax on that salary, even if the employer has no Kenyan presence and tax was withheld abroad.
A non-resident is caught by section 5(1)(b) only where the employer is resident in Kenya or has a permanent establishment here. Foreign employers should note that personnel working in Kenya for more than 91 days in 12 months can create a permanent establishment. Relief for foreign tax is also narrower than most guides suggest. A credit arises under a double taxation agreement (sections 41 and 42). The National Treasury list shows no agreement with Switzerland. Without an agreement, section 16(2)(c) allows a deduction, not a credit, for foreign income tax paid on income deemed to be Kenyan. We have not found Kenya Revenue Authority guidance addressing Class N specifically. Swiss and other foreign tax and social security obligations are outside Kenyan law and need separate advice.
How We Can Help
Clay & Associates Advocates advises individuals and the companies that employ them on Kenya’s full range of permit classes, including Class N, and on the tax residency questions that follow from an extended stay. If your business is relocating staff rather than a single remote worker, our guide to Class G versus Class D work permits covers the employer-sponsored route most relevant to that scenario. Contact our Regulatory & Compliance practice to discuss whether Class N or another permit class fits your circumstances, and what it means for your Kenyan tax position.
Sources: Income Tax Act, Cap. 470, sections 2, 5, 16, 41 and 42; Legal Notice No. 155 of 2024; Kenya Citizenship and Immigration Regulations, 2012; National Treasury, Double Taxation Agreements.
Frequently asked questions
Is there a fixed minimum income to qualify for Class N?
Yes, on the consolidated regulations: an assured annual income of USD 55,000 from sources outside Kenya (Legal Notice No. 155 of 2024). Confirm the current figure with the Directorate before applying.
Can I work for a Kenyan employer on a Class N permit?
No. Class N is tied to remote employment with a company registered outside Kenya, business representation for a foreign entity, or self-employed services to overseas clients. It does not authorise local employment.
How much does a Class N permit cost?
The Directorate’s information pack lists a non-refundable USD 200 processing fee, plus a USD 1,000 issuance fee for each year of validity. The permit runs for one or two years and can be renewed.
Will I owe Kenyan tax on my foreign salary while on a Class N permit?
If you are tax resident in Kenya, yes in principle. Section 5(1)(a) of the Income Tax Act brings a resident’s employment income into Kenyan tax wherever it is earned, and the permit grants no exemption. Residence turns on the three tests in section 2. A credit for foreign tax arises only under a double taxation agreement; otherwise the Act allows a deduction under section 16(2)(c). Get advice on your facts.
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This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
