Tax Alert: July 2023 Kenya Employment Income Taxation Changes

Effective 1st July 2023, the Government, through the Kenya Finance Act 2023 (“the Act”), has introduced new PAYE bands for monthly incomes above KES. 500,000.

Also effective from 1st July 2023, the Act has amended the Kenya Employment Act 2007 to introduce an Affordable Housing Levy.

Further, the Act has introduced a number of other changes related to employment income e.g. on employee mileage reimbursements, club entrance and subscription fees, ESOP plans, post-retirement medical funds etc.

Therefore, starting with the PAYE & Housing Levy returns for the July 2023 payroll that are due on or before 9th August 2023, employers, employees and the general public are advised to implement the changes detailed in the alert below, to their payroll processing. A free updated monthly PAYE calculator is also included.

 

Tax Alert - July 2023 Kenya Employment Income Taxation Changes