Sage 300 People

Release Notes
Kenya COVID-19 Tax Relief Measures
April 2020
Table of Contents

1.0 COVID-19 Tax Relief Measures 3

1.1 Background 3
1.2 Apply Kenya COVID-19 Tax Relief Measures 4

Sage 300 People Page 2 of 4

1.0 COVID-19 Tax Relief Measures

1.1 Background

The President of the Republic of Kenya outlined the measures the government intends to
make to cushion the country against the economic effects of COVID-19. He assented to
the Tax Laws (Amendment) Act, 2020 on 25 April 2020:

 100% Tax relief for persons earning gross monthly income of up to Ksh24 000

 Reduction of the Income Tax Rate PAYE from 30% to 25%

According to the Tax Laws (Amendment) Bill, the above tax measures will be
implemented as follows:

 Change in Personal Relief – Third Schedule, Head A(1)

o Monthly personal relief has increased from KSh1 408.00 to KSh2 400.00

 Change in Tax Table – Third Schedule, Head B(1)

Monthly Taxable Income (KSh)

From To Tax Rate

0,00 24 000.00 10%

24 000.01 40 666.67 15%

40666.68 57 333.33 20%

57 333.34 and above 25%

Note:
The effective date of these changes is 25 April 2020.
If salary payments are made after the effective date, the new rates should apply.

Sage 300 People Page 3 of 4

To summarise:

 A new tax table with effective date of April 2020

 The exemption limit on bonus, overtime and retirement benefits increased as per
the new tax table’s lower bracket with effective date of April 2020

 A new Personal Relief value with effective date of April

1.2 Apply Kenya COVID-19 Tax Relief Measures

Import the new Kenya generic tax file to add the following setup requirements to your
system:

 New tax table

 New statutory limit for the lower tax bracket for bonus, overtime and retirement
benefit exemption
 New statutory limit for Personal Relief

Note:
Before importing the new KEN-GenericTax.xml file please ensure that the Sage 300
People application is updated to at least version 20.1.3.0.

The file must be imported before doing any payroll processing, printing payslips or reports
or making any payments.

Note:
The Kenya tax calculation is only applying a monthly tax calculation and therefore no
corrections for previous periods will be applied. Manual tax adjustments must be done.
Eventhough the effective date of these changes is set to April 2020 in the Sage 300
people application, if these changes are only applied in a period after April, no
backdated tax adjustments will calculate.

Sage 300 People Page 4 of 4