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US Embassy

The entrance to the US Embassy in Nairobi in a picture taken on February 16, 2018.

| File | Nation Media Group

Tax row: US Embassy’s Kenyan staff threaten to sue over new policy

What you need to know:

  • Until recently, the locally sourced staff did not have pay-as-you-earn tax (PAYE) deducted from their payslips as remittance of taxes.
  • Kenyans working with the embassy were asked to submit their Kenya Revenue Authority (KRA) PINs to a body some of them termed “a third party”.

A legal battle is brewing at the United States Embassy in Nairobi following a policy change that is likely to see Kenyan staff have mandatory taxes deducted directly from their salaries.

Until recently, the locally sourced staff did not have pay-as-you-earn tax (PAYE) deducted from their payslips as remittance of taxes was considered an individual’s responsibility.