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Insurance Relief on Contributions to NHIF

By
Irene
Kimani

Global Payment and Compliance

Insurance Relief on Contributions to NHIF

February 9, 2022
min read
By
Irene
Kimani
|
February 9, 2022
8 min read
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In accordance with the amendment of the Finance Act, 2021 Section 31(1) of the Income Tax Act (ITA), Cap 470 , members of the public are now eligible for Insurance Relief that includes contributions to NHIF.


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.


We have already incorporated these changes into our Workpay payroll and PAYE calculators.

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