GROW YOUR BUSINESS IN KENYA
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
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Full Payroll Outsourcing
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Hybrid Payroll Outsource
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International Payment Management
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Local Filing
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Social Security Filing
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Interact with Local Authorities
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Human Resources Management System
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Integration with all Accounting and Third Party
Software
Praxima Services Include
Why Praxima?
Local Tax Compliance
Secure Data Transferring
Responsive Administrators
Increase Productivity
Industry Experts
Running Your Payroll
Focus on Your
Core Business
Outsource your Kenyan payroll to Praxima
Kenya
Tax Highlights
Any income that is accrued in or derived from Kenya is taxable to Kenya. The income tax for individuals are calculated on a graduated scale from 10% to a maximum of 30%. A non-resident in Kenya is only subject to pay tax on the income accrued in Kenya, while a Kenyan resident’s worldwide income is taxable. It is furthermore required from a non-citizen resident to include his/her after-tax foreign-source employment income into his/her Kenya taxable income, while this is not required from a Kenyan citizen.
TAX RATES | 2024
Tax Rates: KES:
0 – 288,000: 10%
288,001 - 388,000 25%
388,000 - 6,000,000 30%
6,000,001 - 9,000,000 32.5%
9,600,000 35%
STATUTORY FILING | 2024
Personal Income Tax returns are due on the 30th of June after the end of the tax year should there be any balance of tax due by the 30th of April. This is also applicable to an individual with a single employment whose tax payable on their salary has already been deducted by the employer under the PAYE system.
SOCIAL SECURITY | 2024
The new NSSF act requires contributions of 12% of an employee's pensionable earnings, split equally between employer and employee at 6% each.
For 2024, contributions are categorized into two tiers:
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Tier I: Up to KES 7,000 of earnings, with a maximum contribution of KES 840.
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Tier II: Earnings between KES 7,000 and KES 36,000, with a maximum contribution of KES 4320.
Benefits include : Retirement, withdrawal, survivors, invalidity and emigration benefits.
Tax Residents
A foreigner is considered a non-resident of Kenya when he/she has worked and stayed in the country for not more than 183 days. A person who stays in Kenya for 61 to 182 days in a tax year shall be taxed at 15% or at resident rate, whichever is higher. A Non-resident are permitted to claim expenses and donations to save tax, but cannot claim personal reliefs. Remuneration received by a non-resident in Kenya would be excepted from tax if he/she is employed on a short-term contract for 60 days or less in a tax year.
Taxable Income
Taxable income includes income received from employment, business or profession, certain investment income, capital gains and more. Income received from an employment can consist of either wages, salary, bonuses, commissions and allowances.
Traveling, entertainment and similar allowances are taxable if its not a reimbursement. A benefit received from an employment is taxable should the aggregate value exceed KES 36 000 per year, or KES 3000 per month. Should a resident individual receive a pension from a pension fund established outside Kenya shall be deemed to be derived from Kenya to the extent related to employment or services rendered in Kenya
Exempt Income
The Finance Act of 2020 repealed the tax exemption on employment income paid in bonuses, overtime, and retirement benefits to employees.
Capital gains tax will not be levied on gains arising from the transfer of shares which was traded on a securities exchange licensed by the Capital Markets Authority.
Medical Insurance paid by the employer on behalf of a full-time employee will be considered a non-taxable benefit.
Your HRMS is Standard
Employee Self-service
Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries
Records
Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.
Work Flow
Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets
PAYMENTS, REPORTING & FILING
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Direct payment into employee bank accounts. Emailed password protected pay slips.
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Payment of taxes, benefit providers and other creditors.
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Filing of returns to the authorities.
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Generation and filing of statutory reports.
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General ledger and 100's of customisable reports.
Get World-Class Payroll
Outsource to Praxima
