KRA Now Targets Casual Workers and Board Members
KRA Now Targets Casual Workers and Board Members
KRA Now Targets Casual Workers and Board Members
This means that firms who employ casual workers on a weekly basis must withhold 1.5% of their gross salaries and send them to the Kenya Revenue Authority (KRA).
Even those hired as construction workers are included in the scheme. In addition, KRA would focus on directors of businesses that receive sitting fees everytime they hold meetings as the Kenya Kwanza government looks to supply 200,000 units annually.
“The Affordable Housing Levy (AHL) is also applicable to salaries paid to casual employees for services rendered over an extended period of time. Therefore, regardless of the terms, AHL applies to all employees having service contracts, according to Esther Wahome, Deputy Commissioner for Policy and Tax Advisory at KRA.
The government expects the fee to increase by more than Ksh30 billion over the next three years, so those juggling two jobs won’t be exempt either. The 1.5% deduction from the same employee’s pay stub must be submitted separately by each employer using the same KRA PIN number.
It turns out that the millions of young people without work in the country will also be taxed in order to build additional houses, despite President William Ruto’s repeated claims to the contrary.
The Employment Act of 2007—which defines an employee as “a person employed for wages or salary and includes an apprentice and any other person”—is the foundation of KRA’s initiative to target casual workers.