The following amendments have been introduced in Kenya.
NSSF Rates Increase
In accordance with Schedule 3 of the NSSF Act No. 45 of 2013, the contribution limits are subject to annual increases. As of February 2025, NSSF will progress to Year 3 of the implementation schedule.
Click here to access the NSSF Act 2013.
Meals Fringe Benefit
As part of the Tax Laws (Amendment) Act 2024, the meal benefit exemption threshold under the Income Tax Act has been revised, increasing from Ksh 48 000.00 per annum (Ksh 4 000.00 per month) to Ksh 60 000.00 per annum (Ksh 5 000.00 per month), effective December 2024.
Previously, the Kenya Revenue Authority (KRA) had issued a public notice clarifying that if the meal benefit exceeded the exemption threshold, the full value became taxable, not just the excess. This was the established application of the law.
However, the amended legislation and explanatory documents published alongside the Tax Laws (Amendment) Act 2024, including the National Treasury’s Explainer of the Proposed Tax Laws and the Memorandum of Objects and Reasons of the Tax Laws Amendment Bill 2024, did not specify that the intention was to change this application by exempting the first Ksh 5 000.00 per month while taxing the excess. Instead, the primary focus of these documents was to communicate the increased exemption threshold.
Following this amendment, the KRA has now released an updated P10 iTax return file, which includes a new column for reporting meal benefits. The structure of this return reflects KRA’s current interpretation:
If the threshold is exceeded, only the portion exceeding Ksh 5 000.00 per month is taxable, rather than the entire amount.
Click here to access the Official Gazette.
NSSF Rates Increase
Effective February 2025, the maximum NSSF contribution rates for the third year are as follows:
| January 2025 | February 2025 | |
| Lower Limit (Tier 1) | 7 000.00 | 8 000.00 |
| Employee Contribution (NSSFEE1) | 420.00 | 480.00 |
| Employer Contribution (NSSFER1) | 420.00 | 480.00 |
| Total Tier 1 NSSF Contribution | 840.00 | 960.00 |
| Upper Limit (Tier 2) | 36 000.00 | 72 000.00 |
| Upper Limit minus Lower Limit | 29 000.00 | 64 000.00 |
| Employee Contribution (NSSFEE2) | 1 740.00 | 3 840.00 |
| Employer Contribution (NSSFER2) | 1 740.00 | 3 840.00 |
| Total Tier 2 NSSF Contribution | 3 480.00 | 7 680.00 |
| Total NSSF Contributions | 4 320.00 | 8 640.00 |
The NSSF contribution percentage remains unchanged at 6% for both the employee and employer in Tier 1 and Tier 2.
Therefore, the maximum NSSF contributions from February 2025 will be:
- Employee contribution (Tier 1 & Tier 2): Ksh 4 320.00
- Employer contribution (Tier 1 & Tier 2): Ksh 4 320.00
Meals Fringe Benefit
Effective December 2024,
- If the current value for meals exceeds Ksh 5 000.00, only the portion exceeding Ksh 5 000.00 becomes taxable.
- If the current value for meals is equal to or lower than Ksh 5 000.00, the full value will be non-taxable.
- Previously, if the value for meals exceeded Ksh 5 000.00, the full value became taxable.