Article 21 - Pensions - Kenya (Old - Effective upto 29-08-2017)

Article 21 : Pensions 1. Any pension (other than a pension of the kind referred to in paragraph 2 of this article) and any annuity, derived from sources within a Contracting State by an individual who is a resident of the other Contracting State may be taxed in the first-mentioned Contracting State, but if the individual is subject to tax in the other Contracting State in respect of the pension or annuity, the tax so charged in the first-mentioned Contracting State shall not exceed the lower of-- (a) 5 per cent. of the pension or annuity; or (b) the amount of tax chargeable on the pension or annuity in the other ContractingState. 2. Pensions paid by, or out of funds created by, a ContractingState to an individual for services rendered to that ContractingState in the discharge of governmental functions may be taxed only in that ContractingState. 3. The term "annuity" means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.