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UPDATED | Kenya: Post Retirement Medical Fund Relief effective 1 January 2024 - not to be implemented by Employers

Updated post 23/01/2024

The Kenya Revenue Authority (KRA) has advised that the post-retirement medical fund relief cannot be granted on the payroll by the employer because the employee has left their job and stopped working.

Sage will not be implementing any changes on the system.


Original post

Kenya has introduced a new relief called “post-retirement medical fund relief” effective 1 January 2024. This relief is separate from the insurance relief. 

The Post-Retirement Medical Schemes provides medical benefits to individuals looking to save towards their medical cover in retirement and employers looking to contribute to their employees’ post-retirement medical benefits. 

The relief is limited to the lessor of:

  • 15% of the post-retirement medical fund contribution paid, or
  • KES60 000 per annum (KES5 000 per month).


The tax relief for the post-retirement medical fund is not yet incorporated into the PAYE of the P10 Return. 

Take note: Our Sage development teams are currently busy with the necessary tax file changes, and the updated tax file announcement will be released here on Community Hub.