The Post-Retirement Medical Fund (PRMF) was introduced by the Finance Act of 2023, effective 1 January 2024. At the time it became effective, the Kenya Revenue Authority (KRA) advised us that the relief could not be claimed on the payroll. For this reason, coupled with the fact that the P10 iTax template did not provide for a field to claim the relief, we did not implement the relief in our systems.

We have since received multiple requests from customers and Business Partners  to implement the relief. This is after explaining the KRA's position that the relief is not claimable on the payroll and that the relief cannot be on the P10 return, they have suggested on having the relief on their payrolls. We therefore concluded to include the relief in our systems, however, each customer must decide if they want to use the relief.

The relief is only applicable to resident individuals and is calculated as the lower of:

• 15% of the amount of contribution paid, or
• KES 60,000 per annum.

Please be on the look out for further announcements on how to implement the PRMF relief in the Sage 300 People system, the relief should not be calculated automatically, i.e., the customer must opt into applying the relief.

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