Income Brackets In Kenya

A person working in kenya typically earns around 147 000 kes per month.

Income brackets in kenya. 16 896 per annum kshs 1 408 per month. This is the average monthly salary including housing transport and other benefits. Income tax rates for individual taxpayers persons who transact business in kenya as individuals sole proprietorships or partners must account for their individual income tax. The average wage income in kenya was reported at 7 051 in 2018 which is an increase from the previous year s value of 6 551.

Kenya s average wage earnings are recorded every year and average at 4 992 from 2008 to 2018. The income tax rates and personal allowances in kenya are updated annually with new tax tables published for resident and non resident taxpayers. Reduction of personal income tax top rate paye from 30 to 25. Personal relief of kshs.

We significantly fund our national budget though taxes. Kenya income tax brackets 2020. Taxation for non resident s employment income. In the long term the kenya personal income tax rate is projected to trend around 30 00 percent in 2021 according to our econometric models.

To mitigate the effects of covid 19 to the kenyan economy the government has implemented the tax law amendment act 2020 with effect from 25th april 2020 as follows. Salaries range from 37 100 kes lowest average to 656 000 kes highest average actual maximum salary is higher. Personal income tax rates. Paye guide 2020 kenya.

Major industries include agriculture forestry fishing mining manufacturing energy tourism and financial services. The tax tables below include the tax rates thresholds and allowances included in the kenya tax calculator 2019. Kra new paye and vat rates in response to covid 19. We significantly fund our national budget though taxes.

As of 2020 kenya had the third largest economy in sub saharan africa coming behind nigeria and south africa. Salaries vary drastically between different careers. Taxes play a fundamental role in kenya s sovereignty. New paye rates kenya 2019 pdf.

Non resident employees are taxable only on their income earned from within kenya or derived from kenya. Personal income tax rate in kenya is expected to reach 30 00 percent by the end of 2020 according to trading economics global macro models and analysts expectations. Income tax rates for employment income in kenya are graduated rates from ten per cent 10 to the highest being thirty per cent 30. To mitigate the effects of covid 19 to the kenyan economy the government has proposed.

Any amount paid to non resident individuals in respect of any employment with or services rendered to an employer who is resident in kenya or to a permanent establishment in kenya is subject to income tax charged at the prevailing individual income tax rates. The economy of kenya is a market based economy with a liberalised external trade system and a few state enterprises. Residents are also taxed on any other income that has accrued in or is derived from kenya.