The bigger net salaries Kenyans will earn from this month

PAYE Kenya: Kenyan employees will earn bigger net salaries from this month. This follows the coming into effect of tax reliefs that are meant to cushion Kenyans in the wake of the coronavirus disease that has now infected over 300 people in the country. The reliefs are contained in the Tax Laws (Amendment) Bill that was now been passed by parliament.

The tax breaks which have been termed as the biggest in over ten years will have a major impact on the Pay As You Earn (PAYE).

Kenyans earning Sh. 24,000 and below per month will earn their salaries in full without deductions by the Kenya Revenue Authority (KRA). This will see Kenyans earning under this bracket get the Sh. 1,583 that would have otherwise been deducted by the KRA.

In the same vein, other savings in taxes will be as follows:

1. Kenyans earning a net salary of Sh. 30,000 will save about Sh. 2,000.
2. Kenyans earning Sh. 40,000 will save about Sh. 2,400.
3. Kenyans earning Sh. 50,000, will save Sh. 3,400.
4. Kenyans earning Sh. Sh. 75,000 will save Sh. 4,500.
5. Kenyans earning Sh. 100,000, will save Sh. 5,800
6. Kenyans earning between Sh. 200,000 and Sh. 300,000 will save between Sh. 10,000 and Sh. 15,000.
7. Kenyans earning Sh. 500,000 will save Sh. 25,000.
8. Kenyans earning Sh. 1 million will save Sh. 50,000.
9. Kenyans earning between Sh. 1 million and Sh. 3 million will save between Sh. 50,000 and Sh. 150,000.

According to a report that appeared in a local daily, the tax relief has also grown by 70 per cent from Sh. 1,408 to Sh. 2,400. “This means that on top of the drop in PAYE, one will also save an additional Sh. 2,400 in taxes in personal reliefs,” says the report on PAYE Kenya reliefs in the Daily Nation.