Following the implementation of the Finance Act 2016, new tax rates for Kenyan PAYE came into effect from January 1st 2017. Hence submissions for January 2017 payroll should reflect the new rates. The changes represent a lighter tax burden, albeit minimal, especially for tax payers in the higher income bracket.
Below are the new monthly tax bands:
|Monthly Bands of taxable Income (KES)||Tax Rate|
|0 – 11,180||10%|
|On the next 10,534||15%|
|On the next 10,534||20%|
|On the next 10,534||25%|
|Personal Relief is increased to KES 1,280 per month|
Use our free PAYE tax calculator to see how your income has changed with the new act.