PAYE tax rates for individuals for the year 2019 are as follows:
|On the first||Shs. 147,580||Shs. 12,298||10%|
|On the next||Shs. 139,043||Shs. 11,587||15%|
|On the next||Shs. 139,043||Shs. 11,587||20%|
|On the next||Shs. 139,043||Shs. 11,587||25%|
|On all Income Over||Shs.564, 709||Shs. 47,059||30%|
Taxation for Non- Resident?s Employment Income
Any amount paid to Non-Resident individuals in respect of any employment with or services rendered to an employer who is resident in Kenya or to a permanent establishment in Kenya is subject to income tax charged at the prevailing individual income tax rates.
Non?Residents are however not entitled to any personal relief.
How do I file for Individual Income Tax Returns?
An individual income tax return is a declaration of income earned by an individual within a particular year.
Every individual with a KRA PIN is required to file this return.
You can file your Individual Income Tax Returns for a particular year of income, anytime between 1st January to 30th June of the following year.
|Monthly Limit (Ksh)||Annual Limit (Ksh)||Effective Since|
|Personal Relief||1,408||16,896||1st January 2018|
|Insurance Relief||5,000||60,000||1st January 2007|
|Allowable Pension Fund Contribution||20,000||240,000||1st January 2006|
|Allowable HOSP Contribution||4,000||48,000||1st January 1999|
|Owner Occupier Interest||25,000||300,000||1st January 2017|
|Disability Exemption||150,000||1,800,000||10th March 2010|
Other PAYE parameters:
Fringe Benefit Tax
The employer is required to pay fringe benefit tax on any loans advanced to employees at an interest rate below the prevailing market interest rate. This applies to all loans issued after 11 June 1998, and to those issued on or before 11 June 1998 but whose terms and conditions have changed after this date.
Market interest rates for 2019 as published by KRA:
|January to March||7|
|April to June||7|
|July to September||7|
|October to December||–|
Market interest rates for 2019:
|January to March||8|
|April to June||8|
|July to September||8|
|October to December||8|
NHIF rates in 2019
|Gross Pay (Ksh)||Deduction (Ksh)||Gross Pay (Ksh)||Deduction (Ksh)|
|Up to 5,999||150||40,000 – 44,999||1,000|
|6,000 – 7,999||300||45,000 – 49,999||1,100|
|8,000 – 11,999||400||50,000 – 59,999||1,200|
|12,000 – 14,999||500||60,000 – 69,999||1,300|
|15,000 – 19,999||600||70,000 – 79,999||1,400|
|20,000 – 24,999||750||80,000 – 89,999||1,500|
|25,000 – 29,999||850||90,000 – 99,999||1,600|
|30,000 – 34,999||900||100,000 and above||1,700|
|35,000 – 39,999||950|