Tax Laws (Amendment) Bill



effective payroll tax rate smaller

Following the assent of the Tax Laws (amendment) bill effective 27th December 2024, do take note of the following changes that will affect Kenya Payroll processing on your Wingubox account, starting from December pay slips:

  1. SHIF is now allowable deduction before tax
  2. Housing Levy is now allowable deduction before tax
  3. Total monthly allowable non-cash benefit has gone up from Kshs 3,000 to Kshs 5,000
  4. Monthly allowable deduction before tax for pension increased from Kshs 20,000 to Kshs 30,000
  5. Monthly allowable deduction before tax for Interest on Mortgage increased from Kshs 25,000 to Kshs 30,000

The above changes should have an effect of reducing the monthly PAYE amount giving a relief to all tax payers. Try out the update PAYE calculator to test the changes.

On your Payroll (Kenya) account, these changes will apply automatically and there is no further action required.
 


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