^KENYA

Employment Tax in Kenya

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Chapter 7

Non-Cash Taxable Benefits in Kenya....cont

1. Housing benefit Director (s.5(3)(a))
   In the case of a director of a company, other than a whole time service director :
   
   
   • The value of housing is taken as 15% of his total income excluding the value of those premises and income which is chargeable to tax under s.3(2)(f)- capital gains
2. Housing benefit - Whole Time Service Director (s.5(3)(b))
   In the case of a Whole Time Service director of a company :
   
   
   • The value of housing is taken as 15% of his gains and profits from employment excluding the value of those premises and income which is chargeable to tax under s.3(2)(f)- capital gains
3. Housing benefit Agricultural Employee (s.5(3)(c))
   Includes a Whole-Time Service Director who is required by terms of employment to reside on a plantation or farm. :
   
   
   • The value of housing is taken as 10% of his gains or profits from employment (i.e. monthly cash pay plus benefits), minus amount of rent charged by the employer.
4. Any other Employee (s.5(3)(d))
   in the case of any other employee :
   
   
   • The value of housing is taken as 15% of his gains or profits from employment excluding the value of those premises (i.e. monthly cash pay plus benefits), minus amount of rent charged by the employer.

Provided that (s.5(3)(d))

• Occupancy for less than 12 months or a portion of the residency will result with prorata apportionment of benefit.


• Where gains and profits from employment exceeds Kes.600,000 per year the value of the premises is limited to
  
  the HIGHER of
  
  1. rent paid by the employer or the fair market rental value of the premises if lease not at arms length and
  2. the fair market rental value If the premises owned by the employer

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