Kenya: Cabinet Orders All Employers to Calculate Employee Tax Reliefs and Exemptions on PAYE to Relieve KRA

The Cabinet has given its nod to the Finance Bill 2025, with key changes approved that will change how employers calculate Pay As You Earn (PAYE) taxes for employees. 

Employers will be required to automatically apply all eligible tax reliefs and exemptions when calculating Pay As You Earn (PAYE) taxes for employees. 

This is after the Cabinet took note of the current situation, where many employers omit the reliefs, forcing their employees to seek refunds from the Kenya Revenue Authority…