Kenya Revenue Authority would like to inform all employers and members of the public that the Finance Act, 2021 amended Section 31(1) of the Income Tax Act (ITA), Cap 470 to extend the existing Insurance Relief to include contributions made to the National Hospital Insurance Fund (NHIF).
Paragraph 2 of Head A of the Third Schedule to the ITA provides that the amount of Insurance Relief shall be fifteen percent of the amount of premiums paid but shall not exceed sixty thousand shillings per annum. Contributions to NHIF will therefore be eligible in the computation of Insurance Relief as follows: -
Insurance Relief = 15% (Insurance Premiums + NHIF Contributions) but shall not exceed Kshs. 5,000.00 per month or Kshs. 60,000.00 per year.
The effective date of this amendment was 1st January 2022.
COMMISSIONER FOR DOMESTIC TAXES
