Kenyan New PAYE Brackets

Following the Finance bill 2018, the Cabinet Secretary proposed to increase the Individual PAYE bands by 10%. This increase follows a subsequent extension that was implemented on 1 January 2017. The new bands are as follows:

New KRA PAYE Tax Rates

Annual PAYE bands (KES)  2017 Annual  PAYE Old bands (KES)  Rate
 First 147,576  First 134,160  10%
 Next 139,056  Next 126,408  15%
 Next 139,056  Next 126,408  20%
 Next 139,056  Next 126,408  25%
 Over 564,744  Over 513,384  30%
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The above changes will provide a welcome cushion to taxpayers whose income has been adversely affected by inflation

Likewise, beginning January 2018, the PAYE personal relief increased by a 10 percent from KES 15,360 per annum. i.e. KES 1280 per month to KES 16,896 per annum i.e. KES 1,408. Resulting from the above changes, only persons earning more than to KES 13,486 per month will be charged PAYE. Previously

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the lowest taxable income was KES 12,260 per month.