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Kenya - Insurance Relief (NHIF)

In accordance with the Finance Act No. 8 of 2021, the National Hospital Insurance Fund (NHIF) deductions are eligible for insurance relief in the PAYE tax calculation.

 The existing insurance relief has been extended to include NHIF relief on contributions to the fund by the employees at the rate of 15% per month subject to a maximum of KES5 000 per month or KES60 000 per year.

 Effective 1 January 2022.

  • There is no tax file change for Kenya for the 2022 tax year, however changes are required on the company Africa Tax Rule.

    To apply the change on your Kenya company:

    • The insurance relief extended to include NHIF,  will need to be amended on the Africa Tax Ruling, to include the specific NHIF deduction line.

    Should you require assistance with making and testing the changes, please contact your accredited Sage Business Partner for assistance , or book a consultation.