Salaried workers to enjoy tax relief

Kenyans queue to file their income tax returns at the Kenya Revenue Authority iTax Support Centre in Eldoret on June 29, 2015. The government has made changes to the income tax law. PHOTO | JARED NYATAYA | NATION MEDIA GROUP

What you need to know:

  • Employees will get higher personal relief — the amount returned to workers after tax every month.
  • Staring January 1 next year, personal relief will be raised from the current Sh13,944 per year (Sh1,162 per month) to Sh15,360 per year (Sh1,280 per month).
  • Workers at the bottom of the wage scale who currently earn Sh10,164 per month, mainly cleaners, subordinate staff, messengers and other low-cadre staff, and pay a total income tax of Sh1,016 will now be fully exempted from the deduction.
  • Those earning Sh38,893 — mainly entry-level graduate employees in the public sector and which is the current starting point of the highest band where a 30 per cent income tax is applicable — will also enjoy a reduction as the highest rate will now touch those earning Sh42,782 and above.

Thousands of schoolteachers, principals, civil servants and private sector employees will enjoy lower taxes from January as the government effects changes to the income tax law.

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