TAX ALERT! (Have You Made These Necessary Adjustments to Your Payroll?)

tax alert


We’d like to notify our clients of changes in resident taxes:

  1. 1.The Government, through the Kenya Finance Act 2017/ 2018, revised the resident individual tax brackets and increased the monthly personal relief from KES. 1,280 to KES. 1,408 with effect from 1st January 2018. The tax bands and personal relief have been expanded by 10%.
  1. 2.Bonuses, overtime and retirement benefits paid to low income earners (income below the revised lowest tax bracket of 10%, upto KES. 12,298 per month or KES. 147,580 per annum) are exempted from tax. This will marginally reduce the PAYE burden.

Monthly Taxable Pay (KES)

Annual Taxable Pay (KES)

Tax Rate (%)

Up to 12,298

Up to 147,580


12,299 – 23,885

147,581 - 286,623


23,886 – 35,472

286,624 - 425,666


35,473 – 47,059

425,667 - 564,709


Above 47,059

Above 564,709


Monthly Relief: 1,408

Annual Relief: 16,896


Therefore, starting with the PAYE return for the January payroll that is due on 9th February 2018, employers are advised to implement the following changes to their payroll processing. It’s the responsibility of the Employer to deduct and remit PAYE, failure to which it attracts a penalty.

For further information or assistance, please get in touch with Ann through the contacts below:


Ichungwa Ann

Wylde International

Tel: 0701 560203

Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it. /