Global Daily Tax News, Kenya Planning Tax Relief For Health Fund Contributions, (Nov 18, 2024)

Kenya is due to introduce tax relief for contributions to the Social Health Insurance Fund (SHIF).

The Kenya Revenue Authority has issued a statement noting the implementation of the Social Health Insurance Act (SHIA). This repealed the National Health Insurance Fund Act and provided for the replacement of the National Health Insurance Fund (NHIF) with the SHIF.

Currently, tax relief exists only for contributions made to the NHIF. The KRA has clarified that currently the relief currently provided under the Income Tax Act does not apply to contributions made to the SHIF under the Social Health Insurance Act.

The KRA noted that the Tax Laws (Amendment) Bill, 2024, however, includes a proposal to amend the income tax act to provide a deduction of the SHIF contributions against taxable income.