Tax Rates
PAYE, Fringe Benefit Tax, NHIF and NSSF parameters for 2013.
PAYE
PAYE rates in effect from 1st January 2005:
| Monthly Taxable Pay (Ksh) |
Annual Taxable Pay (Ksh) |
Rate of Tax (%) |
| Up to 10,164 |
Up to 121,968 |
10 |
| 10,165 - 19,740 |
121,969 - 236,880 |
15 |
| 19,741 - 29,316 |
236,881 - 351,792 |
20 |
| 29,317 - 38,892 |
351,793 - 466,704 |
25 |
| Above 38,892 |
Above 466,704 |
30 |
Other PAYE parameters:
| |
Monthly Limit (Ksh) |
Annual Limit (Ksh) |
Effective Since |
| Personal Relief |
1,162 |
13,944 |
1st January 2005 |
| 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 |
12,500 |
150,000 |
1st January 2006 |
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.
For 2013 the market interest rates published by KRA are as follows:
| Quarter |
Interest
Rate (%) |
| January to March |
9 |
| April to June |
9 |
| July to September |
- |
| October to December |
- |
NHIF
NHIF rates in effect from 1 April 2012 (suspended due to ongoing court case):
| Gross Pay (Ksh) |
Deduction (Ksh) |
| Up to 5,999 |
150 |
| 6,000 - 7,999 |
300 |
| 8,000 - 11,999 |
400 |
| 12,000 - 14,999 |
500 |
| 15,000 - 19,999 |
600 |
| 20,000 - 24,999 |
750 |
| 25,000 - 29,999 |
850 |
| 30,000 - 49,999 |
1,000 |
| 50,000 - 99,999 |
1,500 |
| 100,000 and above |
2,000 |
NHIF rates in effect up to 31 March 2012:
| Gross Pay (Ksh) |
Deduction (Ksh) |
|
Gross Pay (Ksh) |
Deduction (Ksh) |
| Up to 999 |
0 |
|
8,000 - 8,999 |
180 |
| 1,000 - 1,499 |
30 |
|
9,000 - 9,999 |
200 |
| 1,500 - 1,999 |
40 |
|
10,000 - 10,999 |
220 |
| 2,000 - 2,999 |
60 |
|
11,000 - 11,999 |
240 |
| 3,000 - 3,999 |
80 |
|
12,000 - 12,999 |
260 |
| 4,000 - 4,999 |
100 |
|
13,000 - 13,999 |
280 |
| 5,000 - 5,999 |
120 |
|
14,000 - 14,999 |
300 |
| 6,000 - 6,999 |
140 |
|
Above 14,999 |
320 |
| 7,000 - 7,999 |
160 |
|
|
|
NSSF
The employee and the employer contribute 5% of gross pay each. The combined employee and employer contribution for each pay period is subject to the following limits:
Pay
Frequency |
Maximum
Contribution
(Ksh) |
| Monthly |
400 |
| Biweekly |
200 |
| Weekly |
100 |
The maximum contribution was last revised on 1st December 2001.
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