Tax exempt pension savings to rise to Sh30,000 per month

Savings of up to Sh30,000 per month in retirement benefit schemes will be exempted from tax if Parliament passes the proposal that seeks to raise the figure from the current Sh20,000.

The proposed 50 percent rise in the figure is contained in the Finance Bill 2024, which seeks to amend section 5 of the Income Tax Act that allows Kenya Revenue Authority to exempt from tax up to Sh240,000 annual income contributed as pension in retirement schemes.