Kenyan legislatures known as the Members of the National Assembly or the Members of Parliament are known to be one of the highest paid civil servants in Kenya.
Most Kenyans wonder whether MPs are taxable or if they are exempted from tax. Here I will guide you with details you need to know about taxation on MPs.
The basic salary of a Member of Parliament (MP) is usually at a minimum of sh621,250 per month to 710,000 per month.
In addition to this entitlement, there are other allowances MPs enjoy such as sitting allowances, Housing Allowances, Medical Allowances, Hardship Allowances among other benefits as car allowance.
General Taxation in Kenya
Every person is taxed depending on their taxable income which is determined by the basic salary together with the total allowances giving the total taxable income.
Taxation in Kenya is done on both individuals and also to companies. As long as you have a return in Kenya your returns are tax payable. Companies are taxed at a 30% of their profits while individuals are taxed on PAYE depending on how much they earn with higher salaries being attributed to high taxes.
|Monthly Taxable Income||Annual Taxable Income||Income Tax Rate Charged|
|Up to Kes 12,298||Up to Kes 147,580||10%|
|Kes 12,299 to Kes 23,885||Kes 147,581to Kes 286,623||15%|
|Kes 23,886 to Kes 35,472||Kes 286,624 to Kes 425,666||20%|
|Kes 35,473 to Kes 47,059||Kes 425,667 to Kes 564,709||25%|
|Above Kes 47,059||Above Kes 564,709||30%|
Every individual is entitled to a Personal relief of Kes 2,400 Per Month and Kes 28,800 per Year
Is MPs Salary Taxable?
Yes, MPs salary is usually taxable. As a matter of fact, all MPs pay their taxes as other civil servants. The taxes charged on MPs is usually taxable on their basic salary together with all the allowances they earn on duty.
Additionally they are also entitled to a the personal relief provided to every taxpayer which is usually Kes 2,400 per month.
The rate in which MPs are charged is usually 30% of their taxable income with most of their taxable income going above the threshold tax rate which is usually Kes 564,709. This, therefore means that every MP in Kenya will pay a tax of 30% of the Basic Salary plus all allowances minus the personal relief.
MPs Exempted from Taxation
There are MPs exempted from taxation who are the MPs registered under people with disabilities. For instance the MP representing People with Disabilities (PWDs) where in most cases is one of them is exempted from taxation.
However, this exemption on these MPs is usually applied to the first Kes 150,000 per month and the first Kes 1.8 Million Per Year of their total basic salary and allowances.
With this, they also pay taxes but at a reduced taxable income compared to other MPs with their taxable income being less with Kes 150,000 of the normal total taxable income without the exemption.
Kenyan MPs have been on debate always to be exempted from taxation though this bill has never passed with most Kenyans complaining claiming that they should be the highest tax payers in Kenya.