A section of expatriate workers in Kenya and their employers have been dealt a blow after the Treasury removed a long-standing preferential provision that allowed for deduction of one-third of their total gains and profits from the employment of foreigners before taxation.
The newly signed Finance Act 2025 has deleted the provision that currently allows for the partial deduction of employment gains by a section of foreign workers before taxation—dealing a blow to their net earnings even as the country battles to maximise revenue collection.
