This archive report was first published on 23 April 2020.
As of this month, Kenyan employees are set to enjoy bigger net salaries, courtesy of tax reliefs aimed at mitigating the economic effects of the coronavirus disease, which has infected over 300 people in the country.
The tax breaks, contained in the Tax Laws (Amendment) Bill, have been described as the biggest in over ten years and are expected to have a significant impact on the Pay As You Earn (PAYE) system.
Under the new tax relief, Kenyans earning Sh. 24,000 and below per month will no longer have their salaries deducted by the Kenya Revenue Authority (KRA), resulting in a savings of Sh. 1,583.
Other savings in taxes will be as follows:
- Kenyans earning a net salary of Sh. 30,000 will save about Sh. 2,000.
- Kenyans earning Sh. 40,000 will save about Sh. 2,400.
- Kenyans earning Sh. 50,000, will save Sh. 3,400.
- Kenyans earning Sh. 75,000 will save Sh. 4,500.
- Kenyans earning Sh. 100,000, will save Sh. 5,800.
- Kenyans earning between Sh. 200,000 and Sh. 300,000 will save between Sh. 10,000 and Sh. 15,000.
- Kenyans earning Sh. 500,000 will save Sh. 25,000.
- Kenyans earning Sh. 1 million will save Sh. 50,000.
- Kenyans earning between Sh. 1 million and Sh. 3 million will save between Sh. 50,000 and Sh. 150,000.
According to a report in the Daily Nation, the tax relief has also grown by 70 per cent from Sh. 1,408 to Sh. 2,400, with the author stating, “This means that on top of the drop in PAYE, one will also save an additional Sh. 2,400 in taxes in personal reliefs,”
