The government of Kenya’s strategy on tax and revenue reforms aims to significantly grow revenue in the 2019/20 fiscal year and beyond. To this end, several tax policies and revenue administration reforms have been put in place to enhance taxpayer education, make greater use of technology, and implement a simplified tax regime for the informal sector. We are also aware that the government is working on a draft Income Tax Bill.
Kenya is in the process of introducing a National Housing Development Fund (NHDF). Employers and employees will each be required to contribute 1.5% of the employee’s monthly basic salary to the fund, but the combined contribution is capped at 5,000 Kenyan shillings (KES) per month. The NHDF is not yet operational, as contributions will only be made once certain regulations are in place. However, the High Court suspended implementation of the 1.5% NHDF contribution via interim orders until the petition is heard and determined.
Last Reviewed - 23 September 2019