RATES OF TAX (For employment income including wife’s employment, self-employment and professional income).

Year of income 2024.

Assume the following rates of tax applied throughout the year of income 2023:
Monthly taxable pay Annual taxable pay Rate of tax
(Sh.) (Sh.) % in each Sh.
1 - 24,000 1 - 288,000 10%
24,001 - 32,333 288,001 - 388,000 25%
32,334 - 500,000 388,001 - 6,000,000 30%
500,001 - 800,000 6,000,001 - 9,600,000 32.5%
Excess over 800,000 Excess over 9,600,000 35%

Personal relief Sh.2,400 per month (Sh.28,800 per annum).

Investment allowance: Rate of investment allowance Residual value Prescribed benefit rates of motor vehicles
(25% per year provided by employer
on equal (i) Saloons, Hatch Backs and Estates
instalments) Monthly rates Annual
Capital expenditure incurred on: rates
(Sh.) (Sh.)

(a) Buildings: Up to 1200 cc 3,600 43,200

• Hotel building 50% in the first year of use 25% 1201 - 1500 cc 4,200 50,400
• Building used for manufacture 50% in the first year of use 25% 1501 - 1750 cc 5,800 69,600
• Hospital buildings 50% in the first year of use 25% 1751 - 2000 cc 7,200 86,400
• Petroleum or gas storage facilities 50% in the first year of use 25% 2001 - 3000 cc 8,600 103,200
• Educational/hostels building 10% per year on straight line basis Over - 3000 cc 14,400 172,800
• Commercial building 10% per year on straight line basis
(b) Machinery: (ii) Pick-ups, Panel Vans (unconverted)
• Machinery used for manufacture 50% in the first year of use 25% Up to - 1750 cc 3,600 43,200
• Hospital equipment 50% in the first year of use 50% 25% Over - 1750 cc 4,200 50,400
• Ships or aircraft in the first year of use 25%
• Motor vehicles and heavy earth 25% per year on straight line basis
moving equipment (iii) Land Rovers/Cruisers 7,200
• Computer software, calculators, 25% per year on straight line basis 86,400
copiers and duplicating machines
• Furniture and fittings 10% per year on straight line basis
• Telecommunication equipment 10% per year on straight line basis
• Film equipment by a local producer 25% per year on straight line basis
• Machinery used to undertake 50% in the first year of use
operations under prospecting rights 25%
and exploration under mining rights
• Other machinery 10% per year on straight line basis
(c) Purchase/acquisition of right to use 10% per year on straight line basis
fibre optic cable by
telecommunication operation
(d) Farm works 50% in the first year of use 25%

Commissioner’s prescribed benefit rates: Monthly rates Annual rates

Services (Sh.) (Sh.)
(i) Electricity (Communal or from a generator) 1,500 18,000

(ii) Water (Communal or from a borehole) 500 6,000

Agriculture employees: Reduced rates of benefits

(i) Water 200 2,400
(ii) Electricity 900 10,800