Dear X3 HR and Payroll User, 

President Uhuru Kenyatta has ordered the following payroll-related tax changes as part of measures announced to cushion Kenyans against the impact of the coronavirus pandemic:

• 100 % Tax Relief for persons earning gross monthly income of up to Ksh24 000.
• Reduction of Income Tax Rate PAYE from 30% to 25%.

 According to the Tax Laws (Amendment) Bill, the above tax measures will be implemented as follows:

 Change in Personal Relief – Third Schedule, Head A(1)

• Annual personal relief has increased from KSh16 896 to KSh28 800.

Change in tax table – Third Schedule, Head B(1)

It is important to take note of the following:

• The proposed tax changes are not promulgated yet and therefore must be applied at own risk. If the proposed changes are approved by parliament, it will be effective immediately.
• The effective date of the patch is 1 April 2020.  If the effective date change, a new patch will be provided with the amended effective date.
• Create a new “valid from” date 01/04/2020 if it is not already done by copying the latest folder/legislation values.  This must be done before integrating the pay plan patch, to ensure all other statutory values are created for the new date.
• The pay plan patch(es) must be integrated to both the reference and daughter folders. Access: Development > Utilities > Patches > Patch integration
• Communication will be sent out as soon as the proposed tax changes are approved by parliament.

Please request the relevant patches from the support desk 

Kind Regards 

X3 HR and Payroll support team