Court lifts ban on Finance Act 2023 - Kenya
The ban placed by the high court of Kenya on the controversial Finance Act of 2023 was lifted by the court of appeal on July 28th, 2023.
Consequently, the addition of housing levy (1.5% of gross salary from employer + employee) and updated taxation tables are now enforceable from July 2023 payroll.
Below are the new monthly tax bands effective July 2023. For more information, read KRA article here.
| Monthly Bands of Taxable Income (KES) | Tax Rate |
|---|---|
| 0 – 24,000 | 10% |
| On the next 8,333 | 25% |
| On the next 467,667 | 30% |
| On the next 300,000 | 32.5% |
| On amounts over 800,000 | 35% |
| Personal Relief: KES 2,400.00 per month | |
| Minimum Taxable Income: KES 24,001.00 per month | |
For users of Wingubox Online Payroll Software, this formula will be automatically available in your account.
Use our free PAYE tax calculator to see how your income has changed with the new act.
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