What changed under Finance Act 2025
Before Finance Act 2025, the tax-free subsistence allowance was capped at KES 2,000/day (set in 1995, never indexed). The 2025 amendment raised it to KES 10,000/day, the biggest single per-diem reform in 30 years and aligned with current Nairobi accommodation costs.
How tax is computed on the excess
Anything above 10k/day adds to your employment income and is taxed at your applicable PAYE band, typically 30% for managerial roles paying high per diem rates. The calculator shows an estimate at 30%; your actual deduction depends on your full salary band.
What to do as an employee
If your employer is paying above 10k/day, ask them to confirm whether the excess is being PAYE-ed at source. If yes, no action needed. If no, you owe self-assessed PAYE on the excess at year-end.