During 2003, the Income Tax Act was amended by re-introducing section 31, which allows you to enjoy premium tax relief at a rate of 15% of the premiums paid towards a life assurance policy effected on or after 1 January 2003. The maximum relief is KES 5,000 per month or KES 60,000 per annum. The maximum policy term must be at least 10 years.

A Life Assurance Plan Eligibility Certificate is issued in order for you to claim the benefit of this income tax relief. This certificate should be forwarded to your employer who will reduce the monthly pay-as-you-earn (PAYE) deduction by the amount of tax relief you are entitled to. Please remember to record your Personal Identification Number (PIN) when you submit the certificate to your employer.

It is important to note that you will only receive the benefit of this income tax relief while this policy remains in force i.e. as you continue to pay premiums for the duration of the policy.

A Life Assurance Premium Certificate showing premiums paid for the tax year will be issued upon request at the end of the calendar year.