Insurance relief calculator for Kenya
15% of premiums, up to KES 60,000
15% of the KES 48,000 you pay in a year gives KES 7,200 of relief, taken off your tax — about KES 600 a month in your payroll.
| Line | Amount |
|---|---|
| Premiums paid in the yearKES 4,000 × 12 months | KES 48,000 |
| 15% of the premiumsKES 48,000 × 15% | KES 7,200 |
| Annual capKES 60,000 a year for all your policies together | not reached |
| Insurance relief for the year | KES 7,200 |
What next: how to claim insurance relief (the insurer's certificate, PAYE, iTax) — or compare life and education policies and ask licensed insurers for quotes.
Indicative: the relief your employer or KRA applies decides. A relief lowers the tax itself, so it is only worth its full amount if you owe at least that much tax. Surrendering a policy early can claw back the relief (s.31, proviso (vi)).
Free, no obligation. Only insurers and brokers licensed by IRA Kenya receive your request.
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The rule the calculator applies
KRA's individual income tax page gives an "insurance relief of 15% of the amount of premiums paid for self, spouse or child", which "shall not exceed Kshs. 60,000 per annum", on life insurance, an education policy with a maturity period of at least ten years, and health insurance. The legal basis is section 31 and the Third Schedule of the Income Tax Act.
| Item | Figure |
|---|---|
| Rate | 15% of premiums paid in the year |
| Annual cap | KES 60,000 for all qualifying policies together |
| Monthly equivalent in the payroll | KES 5,000 (60,000 ÷ 12) |
| Premium at which the cap is reached | KES 400,000 a year (≈ KES 33,333 a month) |
A relief is taken off the tax charged, after the tax bands — like the personal relief of KES 2,400 a month that KRA lists on the same page. It can only reduce your tax to zero; it is not paid out as cash.
Worked examples
| Premium a month | 15% of a year's premiums | Relief a year | Relief a month |
|---|---|---|---|
| KES 4,000 | KES 7,200 | KES 7,200 | KES 600 |
| KES 15,000 | KES 27,000 | KES 27,000 | KES 2,250 |
| KES 40,000 | KES 72,000 | KES 60,000 (cap) | KES 5,000 |
The first row is the example in KRA's Employer's Guide to PAYE: annual premiums of KES 48,000 give KES 7,200 a year, KES 600 a month.
What qualifies — and what does not
- Qualifies: life insurance, an education policy maturing in 10 years or more, private health insurance — on your life, your spouse's or your child's.
- A child counts only while under 18 on the date the premium is paid (s.31(2)).
- Does not qualify: motor, home and other general insurance; an education policy shorter than 10 years.
- SHA / SHIF contributions are not part of the 15% relief: since December 2024 they are deducted from taxable income instead (s.15(2)(ae)).
To get it, give your employer the insurer's certificate so it is applied in PAYE; how to do it and the traps (surrender, lapse) are in insurance relief in Kenya. Policies themselves are compared in life and education insurance.
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Frequently asked questions
How is insurance relief calculated in Kenya?
15% of the premiums paid in the year on qualifying life, education and health policies, capped at KES 60,000 a year (KES 5,000 a month). It is deducted from the tax you owe.
What is the maximum insurance relief in Kenya?
KES 60,000 a year, or KES 5,000 a month in the payroll, for all your qualifying policies together. You reach it with KES 400,000 of premiums a year.
Does NHIF or SHA qualify for insurance relief?
No. SHIF contributions are deducted from taxable income under section 15(2)(ae) of the Income Tax Act; they do not earn the 15% insurance relief. A private medical cover you buy on top still qualifies.
Can I claim insurance relief on my child's education policy?
Yes, if the policy matures in at least 10 years and the child is under 18 on the date each premium is paid.
How do I claim insurance relief as an employee?
Give your employer the insurer's certificate (insured, policy type, sum assured, maturity, premiums, start date); the employer applies the relief each month in PAYE. See insurance relief in Kenya.
Sources
- Kenya Revenue Authority — Individual Income Tax: insurance relief of 15% of premiums for self, spouse or child, not exceeding KES 60,000 a year; personal relief KES 2,400 a month (opened 28 October 2026)
- Income Tax Act, Cap. 470 (as at 1 July 2026) — s.15(2)(ae) (SHIF contributions deductible), s.31 (insurance relief) and Third Schedule, Head B, para. 2 — Kenya Law
- Kenya Revenue Authority — Employer's Guide to Pay As You Earn (insurance relief in the payroll, worked example)