Introduction
Many Kenyan workers attended this year’s labour day celebrations on May 1st. There were great expectations of salary increment which had not to be done in the recent past. This was against the increased cost of living where many Kenyans are finding it difficult to cater for their daily requirements.
Tax changes
The following three items from the President’s speech have a direct bearing on tax in Kenya:
- The minimum taxable wage is kshs 13,475. However, the increase was not done on that day but had been done in the recent past.
- The minimum wage was increased by 18 %. The worker’s Unions had asked for 22 % increment.
- Non-taxable bonuses and overtime were increased up to kshs 100,000. This means that if a person earns bonuses or overtime that is less than kshs 100,000, it should not be taxed. However, there was no explanation about whether the amount was per month or year.
For more on the presidential speech visit www.president.go.ke.
Feel free to send us questions or topics on tax and investments in Kenya that you would wish to be covered in this Website.
Disclaimer
This post is for general overview and guidance and does not in any way amount to professional advice. Consequently, www.taxkenya.com, it’s owner or associates do not take any responsibility for results of any action taken on the basis of the information in this post or for any errors or omissions. Kenyan taxpayers must always rely on the most current information from KRA. Tax industry in Kenya is very dynamic.
©Wakaguyu Wa Kiburi
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