Sharp Daily
No Result
View All Result
Thursday, July 31, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

KRA implements revised PAYE deductions starting December 2024

Teresiah Ngio by Teresiah Ngio
December 23, 2024
in News
Reading Time: 2 mins read

The Kenya Revenue Authority (KRA) has directed employers to implement new Pay As You Earn (PAYE) deductions from December 27, 2024, following the signing of the Tax Laws (Amendment) Bill, 2024, into law by President William Ruto. This amendment introduces significant changes to the PAYE system, aiming to increase employee take-home pay and simplify tax compliance.

In a notice issued on December 19, KRA highlighted that the changes, effective next year, would impact the way taxable income is calculated. Key adjustments include new deductible amounts and the removal of certain tax reliefs.

Key Changes to PAYE Deductions:

  1. New Deductible Amounts:
    • Contributions to the Affordable Housing Levy.
    • Post-retirement medical fund contributions, limited to KES 15,000 per month.
    • Contributions to the Social Health Insurance Fund (SHIF).
    • Mortgage interest payments, capped at KES 360,000 annually (KSh 30,000 monthly).
    • Pension or provident fund contributions, also limited to KES 360,000 annually (KSh 30,000 monthly).
  2. Removal of Certain Tax Reliefs:
    • Affordable Housing Relief and Post-Retirement Medical Fund Relief have been removed from the system.
  3. Exemptions for Employment Benefits:
    • Benefits, advantages, or facilities valued below KES 60,000 annually (KES 5,000 monthly) will no longer be included in taxable income.
    • The first KES 60,000 annually (KES 5,000 monthly) for meals provided by employers will be exempt from taxation.
    • Gratuity or similar payments up to KES 360,000 annually will not be taxed.

KRA emphasized that the revised tax framework is designed to streamline the tax system and enhance employee benefits. “The new system simplifies tax compliance while offering specific tax breaks, especially in the housing and health sectors,” KRA stated in its notice.

RELATEDPOSTS

Lessons from KRA’s VAT turnaround

June 12, 2025

Kenya Revenue Authority (KRA) dismisses 19 staff in a renewed anti-corruption drive

February 13, 2025

Employers are expected to align their payroll systems with the new regulations by the December 27 deadline. These changes are part of the government’s broader efforts to ensure a more efficient tax system while boosting employees’ disposable income.

Previous Post

Ruto confirms Nairobi-Nakuru highway dualling to begin in 2024

Next Post

Gift yourself financial peace this holiday season with CMMF

Teresiah Ngio

Teresiah Ngio

Related Posts

commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025

LATEST STORIES

Why Syokimau, a satellite town is attracting real estate investors

July 31, 2025

Shri Krishana Overseas lists on NSE

July 25, 2025

Why young professionals should care about pensions

July 23, 2025

How Kenya can reinforce fiscal rules to prevent recurrent budget overruns

July 23, 2025
commercial illustrator

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025

Transferring Your Retirement Benefits Between Pension Schemes in Kenya

July 23, 2025

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025

The Importance of Asset Diversification on Kenyan Pension Funds

July 18, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024