Aug 15, 2023 2 min read

Kenya – 2023 Statutory Changes

Effective from 28 July 2023, the Kenyan Government has lifted the suspension barring the implementation of the 2023 Finance Act.

The Finance Act of 2023 proposed the below changes to take effect from the 1st of July 2023:

Exemption of travel allowance from Personal Income Tax

Increased rate for personal tax

The Act introduces two more tax rates and tax bands for individuals, namely:

National Housing Development Fund

The Act introduces a mandatory housing levy to be contributed by both the employer and employee. The contribution is broken down as follows:

The employer’s contribution to the Affordable Housing Levy is an allowable deduction under Section 15 of the Income Tax Act. The employer is responsible for remitting the levy by the 9th day of the following month.

Please note that these changes may be implemented retroactively.

For employers who have already filed their monthly return, they can file an amended return.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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