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Top earners to get more tax-free per diem in Finance Bill

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State spending on domestic and foreign travel has eaten up a huge chunk of ministerial budgets, with offices such as those of the President, his deputy and the prime cabinet secretary topping the charts.

Photo credit: File | Nation Media Group

High-income earners who frequently travel for work are poised to get a tax break under the proposed Finance Bill 2025, which seeks to raise the daily tax-free per diem allowance from Sh2,000 to Sh10,000.

The fivefold increase will primarily favour senior government officials and corporate executives, who typically receive higher per diems during local and foreign business trips.