Medical
Where an employer provides its employees (including directors) and their beneficiaries (spouse & upto 4 children whose age does not exceed 21 years) with free medical services or free medical insurance, the value of such medical service or insurance is not a taxable benefit on the employee.
Please note that:
a. In the case of medical services provided to a director other than a whole time service director shall be the limit which will be prescribed by the Cabinet Secretary from time to time. The current limit is Kshs.1,000,000 per year.
b. The medical insurance must be provided by a provider who is approved by the Commissioner of Insurance.
Passages
When an employer himself pays for or reimburses the cost of tickets for passages, including leave passages for his employee and family, the value of the passages is a nontaxable benefit of the employee if the employee is recruited outside Kenya and is in Kenya solely for the purpose of serving his employer and he is not a citizen.
Where, however, such employee receives a cash sum either periodically or in one amount which he is free to save or spend as he chooses or for any other purposes and for the expenditure of which he does not have to account to the employer, the amount received is a taxable cash allowance. Passages paid for by the employer in circumstances other than that in italic above are a taxable benefit on the employee.