Kenya's Finance Bill 2025: Triple Tax Threat to Employee Welfare Benefits Looms
The newly proposed Finance Bill 2025 has sent shockwaves through the Kenyan workforce, as the Treasury announces plans to triple the tax rate on employee welfare benefits. This significant increase is set to impact both employers and employees, with potential repercussions on the overall job market. As the bill aims to boost revenue, it also raises concerns about the affordability of benefits for employees. With the current levy set to triple, companies may need to reassess their employee welfare packages, potentially affecting the quality of life for many Kenyans. The move is part of the government's efforts to increase tax compliance and revenue collection, with a focus on benefits taxation. As the bill progresses, it is likely to be a key point of discussion, with tax consultants and financial experts weighing in on the potential implications for businesses and individuals alike, including the impact on payroll tax and employee benefits management.
