The relief that will come from this month comes after the amendment to the Income Tax Act within the Finance Act Bill.
Relief will be given to all workers contributing to the National Hospital Insurance Fund (NHIF) scheme.
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Workers will claim up to 15 per cent of the premiums paid with a limit of Sh. 60000 per annum.
According to a statement from KRA, contribution to NHIF will therefore be eligible for computation of insurance relief as shown here.
Relief = 15% (Insurance Premium + NHIF Contribution) but should not exceed sh.500 per month.
The amendments are intended to attract Kenyans to enroll with the NHIF to promote universal health coverage by introducing an insurance relief clause.
Previously, only a section of Kenyans especially health insurance and education policy holders had got relief on insurance premiums.
Relief on insurance premium will be good news for government officials whose salary slips are subject to multiple deductions, making life difficult.
