Court suspends 30pc tax on lumpsum pension pay

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A man holds the new Kenyan banknotes. FILE PHOTO | AFP

The High Court has suspended the 30 percent tax introduced on lumpsum withdrawal of retirement benefits following the amendment of the Finance Act in 2020.

This follows a petition by two pension associations, who argue that the amendment was irregularly introduced by Parliament to subject income tax on provident plans that offer lumpsum retirement benefits to persons aged sixty-five and above.

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