Another win for employees as RUTO changes tune on Housing Levy, NSSF and SHIF tax deductions after pressure from Kenyans – Look!

 Wednesday, June 19, 2024 - Employees are set to earn more after President William Ruto’s government adopted changes for tax proposals in the Finance Bill 2024.

Speaking at the Kenya Kwanza Parliamentary Group press conference, Finance Chair Kuria Kimani noted that the government agreed to make the Social Health Insurance Fund (SHIF) deductions and the Housing Levy tax deductible.

He noted that the savings towards the National Social Security Fund (NSSF) would also be deductible.

The chair explained that the move would reduce the amount of taxable income significantly.

Therefore, going forward, the Pay as You Earn (PAYE) will be determined based on the gross salary minus the deductions for Housing Levy, SHIF and NSSF.

"Levies on the Housing Fund and Social Health Insurance Fund (SHIF) will become income tax deductible. 

This means the levies will not attract income tax, putting much more money in the pockets of employees," he stated.

On his part, National Assembly Majority Leader Kimani Ichung'wah stated that the changes would be beneficial to employees given that they have been paying more money towards taxes amidst economic hardships.

"We are devoting more money back to people especially the employees who have been paying for the housing Levy. 

"The housing levy alongside the SHIF and the NSSF has been proposed to be tax deductible," he stated.