Your mortgage relief
Qualifying interest; saving depends on tax band
The KES 60,000 annual limit is the maximum insurance tax relief, not the maximum premium you may pay. Confusing those two amounts substantially understates the relief. The monthly relief cap is KES 5,000.
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Calculate the relief
| Qualifying annual premiums | 15% of premiums | Annual relief before tax-liability limit |
|---|---|---|
| 30,000 | 4,500 | 4,500 |
| 60,000 | 9,000 | 9,000 |
| 120,000 | 18,000 | 18,000 |
| 400,000 | 60,000 | 60,000 |
| 500,000 | 75,000 | 60,000 |
The formula is the smaller of 15% of qualifying premiums and KES 60,000 annually. A KES 10,000 qualifying monthly premium produces KES 1,500 monthly relief. Do not then multiply that relief by your marginal tax rate: it reduces the calculated tax itself.
Which policies can qualify?
KRA identifies qualifying life, health and education policies for the taxpayer and eligible family members. Education policies require a maturity period of at least ten years. Ask the insurer for the tax certificate and check that the policy and payment qualify; a product’s marketing label is not proof of entitlement.
Do not assume motor, household or travel cover qualifies simply because it is insurance. Nor should you claim employee relief on a premium you did not bear. Employer-provided medical cover has its own treatment and should not be confused with a cash medical allowance.
SHIF is different
Employee SHIF contributions are deducted in arriving at taxable employment income under the current rules. Do not enter the same SHIF payment as qualifying private insurance premiums and claim a second benefit.
How to claim through payroll
Give payroll the policy details, premium evidence and insurer’s tax certificate. Check the relief appears after tax has been calculated. Keep those records for the annual reconciliation and check that the year’s premium amount agrees with what you actually paid. Annual lump-sum premiums need correct allocation; do not invent monthly payments to fit the cap.
If you missed the claim
Compare the insurer’s certificate, your P9 and payroll records before seeking a correction or refund. An unused allowance does not automatically produce a cash payment when there is no tax to offset. Do not cancel and replace cover purely to chase the headline maximum: compare the policy’s protection, exclusions, premium and affordability.
See the wider deductions and reliefs guide for how insurance fits alongside pensions and mortgage interest.
Sources and review date
Reviewed on 21 October 2026. Use the rules for the period being calculated; historical payslips may use different limits.