The Kenya Revenue Authority (KRA) has issued a public notice to employers, employees, and the general public regarding the application of income tax deductions, reliefs, and exemptions under the amended Income Tax Act, Cap 470. The directive, released on October 2, 2025, follows the enactment of the Finance Act, 2025, and takes effect immediately. “The Kenya Revenue Authority (KRA) wishes to inform employers, employees, and the general public that the Finance Act, 2025, amended the Income Tax Act, Cap 470 (‘the Act’), to mandate employers to apply all relevant tax deductions, reliefs, and exemptions when computing income tax on employee emoluments,” the notice partly reads. Employers were reminded to ensure that all returns fully reflect applicable deductions, reliefs, and exemptions in accordance with the updated law. “Recognise and apply tax exemptions for employees who hold valid tax exemption certificates, subject to the prescribed limits.