Govt Makes SHIF Tax Deductible, Bringing Reprieve for Salaried Kenyans
Employees are set to earn more after the government adopted changes for tax proposals in the Finance Bill 2024.
Speaking to the presser of the Kenya Kwanza Parliamentary Group, Finance Chair Kuria Kimani noted that the government agreed to make the Social Health Insurance Fund (SHIF) deductions and the Housing Levy tax deductible.
He noted that the savings towards the National Social Security Fund (NSSF) would also be deductible.
The chair explained that the move would reduce the amount of taxable income significantly.
Therefore, going forward, the Pay as You Earn (PAYE) will be determined based on the gross salary minus the deductions for Housing Levy, SHIF and NSSF.
“Levies on the Housing Fund and Social Health Insurance Fund (SHIF) will become income tax deductible. This means the levies will not attract income tax, putting much more money in the pockets of employees,” he stated.
