The Kenya Revenue Authority (KRA) has issued guidance on tax exemption on the payment of gratuity. The Finance Act, 2025, amended the Income Tax Act to exempt the payment of gratuity from income tax.

The decision underscores that ignoring audited disclosures, ledgers, and salary records violates principles of natural justice. Once actual payment is proved, gratuity deduction must be ...

The Tribunal held that gratuity liability transferred to another employer on employee transfer constitutes valid discharge. Deduction cannot be denied merely because payment was not made directly to ...