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Personal Taxes in Kenya - Monthly pay for PAYE computation

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Monthly Pay "Monthly pay" includes income in respect of any employment or service rendered, accrued in or derived from Kenya. This will include:

(i) Wages, salary, leave pay, sick pay, payment in lieu of leave, directors' fees and other fees,overtime, commission, bonus, gratuity or pension whether payable monthly or at longer or shorter intervals.

(ii) Cash allowances, e.g. house or rent allowance, telephone allowance, round sum allowance etc.

(iii) The amount of any private expenditure of the employee paid by the employer otherwise than as a loan, e.g. house rent, grocery bills, electricity, water, telephone bills, school fees.

(iv) Non-cash benefits when the aggregate value exceeds Kshs.3000 per month.

The value of housing, where provided by the employer. This means that all allowances and benefit to employees are taxable except those expressly exempted under the act.