In groundbreaking proposal, the Treasury, led by Cabinet Secretary John Mbadi, has unveiled a plan aimed at providing significant tax reliefs for Kenyan workers. This initiative allows deductions for the Social Housing Investment Fund (SHIF) and housing levy from gross pay before income tax is calculated. This means more money in the pockets of workers, directly benefiting those at various income levels.
The new monthly reliefs are set to provide substantial savings for employees, with the following benefits:
-Sh318 for workers earning Sh50,000
-Sh637 for those earning Sh100,000
-A remarkable Sh3,187 for high earners bringing in Sh500,000
These deductions aim to ease the financial burden on Kenyans, especially in a time when the cost of living continues to rise. By allowing these deductions before income tax, the Treasury hopes to encourage more individuals to invest in housing and support the government’s broader housing agenda.
For many, these monthly reliefs could mean the difference between financial strain and stability. For instance, a worker earning Sh100,000 will see their take-home pay increase by Sh637, which can be redirected towards savings, investments, or even covering basic living expenses.
CS Mbadi emphasized that this move aligns with the government’s commitment to affordable housing and sustainable economic growth. As more Kenyans access these benefits, there is hope for increased investment in home ownership, leading to a more prosperous and financially secure populace.
In conclusion, these tax reliefs not only provide immediate financial benefits but also support the long-term vision of fostering a strong housing market. Workers are encouraged to take advantage of this opportunity to improve their financial standing while contributing to national development. Stay tuned for more updates as this proposal unfolds.
By Newshub