With the Kenya Revenue Authority (KRA) extending the tax filing deadline to July 5, 2025, taxpayers still have a chance to lower their tax burden by tapping into four key reliefs under the Income Tax Act—many of which go unnoticed.
Here’s a breakdown of the reliefs, their limits, required documentation, and how to claim them on iTax before the new deadline.
1. Mortgage Interest Relief
This relief allows you to deduct interest paid on home loans for purchasing, building, or improving a residential property—provided the loan is from a registered financial institution.
- Maximum claim: Ksh360,000 per year (Ksh30,000 monthly)
- Example: If you paid Ksh280,000 in interest in 2024, you can claim the full amount. If you paid Ksh400,000, the deduction is capped at Ksh360,000.
Documents needed:
- Mortgage interest statement
- Lender’s certificate
- Proof of ownership (title deed or registry extract)
2. Insurance Premium Relief
This offers a 15 percent relief on premiums paid for life, health, or education policies covering you, your spouse, or children.
- Maximum claim: Ksh60,000 per year (Ksh5,000 monthly)
- Example: Mary pays Ksh250,000 in combined premiums and qualifies for a Ksh37,500 relief. Joseph pays Ksh500,000 and qualifies for only the capped Ksh60,000 relief.
Documents needed:
- Premium payment receipts
- Policy schedule showing beneficiaries and cover details
3. Retirement Fund Contributions
This relief applies to contributions made to registered pension, provident, or individual retirement schemes.
- Maximum claim: Ksh360,000 per year (Ksh30,000 monthly)
- The deductible amount is the lowest of:
- Actual contributions
- 30% of pensionable income
- Ksh360,000
Documents needed:
- Annual statement from the retirement fund
- Employer’s remittance statement (if applicable)
4. Charitable Donation Relief
You can deduct donations made to approved charitable organizations—so long as the charity holds a valid tax-exemption certificate.
- Donations must not create a loss for the year.
- No more than half of your donations should go to non-business-related entities.
Documents needed:
- Official receipt showing the charity’s KRA PIN
- Evidence of how the donation was used (e.g., photos or project reports)
- Copy of the charity’s tax-exemption certificate
How to Claim on iTax
- Log in to iTax
- Click File Return
- Under the Deductions tab, select Add Deduction
- Choose the relevant relief and enter the amount
- Upload supporting documents
- Validate and submit before July 5, 2025
To avoid penalties, all taxpayers—whether employed, self-employed, or unemployed—must file their returns annually. Even those with no income must submit nil returns.
As the deadline nears, KRA urges Kenyans to take advantage of the extension and ensure that all eligible reliefs are claimed to maximize savings.
