At the end of this month, your payslip will give you less cash after the decision by the Kenya Revenue Authority to deduct housing tax from gross salaries.
This means that allowances will also be part of deductions for housing tax. The allowances that have been included are commuter allowance, travel allowance, commuter allowance, car allowance, and other cash payments.
An employee making a gross monthly income of Sh. 50,000 will now take home a net of Sh. 39,911 from Sh. 41,457.
This category of workers was initially paying a tax of Sh. 8,543. This has now increased to Sh. 10,089 with the new taxation model.
Kenyans earning Sh. 100,000 will now take home Sh. 73,661 from the current Sh. 76,457.
Kenyans making Sh. 1 million in a month will now be deducted Sh. 35,000Â to take home a salary of Sh. 671,215.
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Previously, they were taking home Sh. 706,457. This means that KRA, NSSF and NHIF were taking up to Sh. 293,543 from their salaries, a figure that is now set to increase to a total of Sh. 328,785.
Employees earning Sh. 250,000 will now take home Sh. 176,411 from the previous Sh. 181,457. Those earning Sh. 500,000 will now earn Sh. 347,661 down from Sh. 356,457.
