Kenya Revenue Authority has released the new monthly and annual tax rates in deducting and remitting Pay As You Earn(PAYE) taxes on salaries and pensions of employees in Kenya.

This comes after Parliament finally enacted into law the reduced rates of tax last Wednesday as proposed by President Uhuru Kenyatta on March 25.All employers who are yet to pay their employees for the month of April 2020 should therefore effect the enacted changes, according to the directive by KRA.

This means that employees earning Sh24,000 and below will now be taxed 10 per cent or PAYE. Those earning above Sh24,000 but below Sh40,667 will pay 15 per cent PAYE. Employees earning above Sh40,667 but below Sh57,334 will pay 20 per cent, while those earning anything above Sh57,334 will pay 25 per cent for PAYE. All employees will get a Sh2,400 tax relief monthly. This means the tax for PAYE paid out by those earning Sh24,000 and below will be cancelled, hence they will get 100 per cent tax relief as per the President's directive.  Read more