NOVEMBER 2024 – KENYA
INSURANCE RELIEF AND SHIF CONTRIBUTIONS
It is important that employers note the following:
Applicability of insurance relief to Social Health Insurance Fund (SHIF) contributions
Following the implementation of the Social Health Insurance Act (SHIA) and uncertainty regarding the applicability of insurance relief to SHIF contributions, the Kenya Revenue Authority (KRA) released a public notice on 8 November 2024 to provide clarity.
Under the current Income Tax Act, tax relief is provided for contributions to the National Health Insurance Fund (NHIF) or health insurance policies starting from 1 January 2007.
However, this relief does not apply to contributions made to the SHIF established under SHIA, which replaced the previous NHIF Act.
The Tax Laws (Amendment) Bill, 2024 proposes a change to allow SHIF contributions to be deducted from taxable income. We will provide an update if this amendment is enacted.
To view the KRA public notice, follow the link.
