Title Allowable deductions
Description

These are the amounts deducted from an employee’s emoluments in order to arrive at the amount which will be subjected to tax


Amounts deductible in determining the taxable employment income shall include:


1.Amount deducted as Affordable Housing Levy pursuant to the Affordable Housing Act, 2024.


2.Contribution to a post-retirement medical fund subject to a limit of Kshs. 15,000 per month.


3.Contributions made to the Social Health Insurance Fund (SHIF).


4.Mortgage interest, not exceeding Kshs. 360,000 per year (Kshs. 30,000 per month), upon money borrowed by a person from one of the first six financial institutions specified in the Fourth Schedule to the Income Tax Act, to purchase or improve premises occupied by the person for residential purposes.


5.Contribution made to a registered pension or provident fund or a registered individual retirement fund up to a limit of Kshs. 360,000 per year (Kshs. 30,000 per month).
Category More about PAYE