PAYE IN KENYA

Every employee in Kenya whether permanently or temporarily employed to a period exceeding one month, is entitled to PAYE (pay as you earn) income tax. The taxation is done to both full time and part time employees with exceptional of those serving for less than a month. The PAYE taxation is managed by the government of Kenya through the Kenya Revenue Authorities or the commonly known as (KRA).
This applies to any kind of payment demanded by the employee from the employees may it be a salary, wedge, commissions and allowances, fees and bonuses. The PAYE taxation is done directly from the employer before the money is given to the employee. Taxpayers in Kenya can get to calculate their taxation rate through tax calculator Kenya service offered by the Pesabazaar.com through their website.
KRA tax calculator  

KRA PAYE calculator is a set program that helps every taxpayer in Kenya to easily calculate their pay as you earn (PAYE) income tax in Kenya. Tax calculator Kenya is set by the Kenya revenue authority to be used by both employer and the employee to understand the statutory contribution that they should be making every year. The KRA calculator Kenya can also help the taxpayers to calculate their Personal Tax Relief (an amount that is deductible from the total PAYE tax). 
The KRA PAYE calculator is accurate since they are maintained and updated as per the changes occurring in the Kenya tax laws. Though this calculator is highly maintained the PESABARAZA.com says they are not liable to any damages caused by the use of this calculation tool.
How it works  

The tax calculator Kenya determines the percentage at which every level of earning is taxed. The pay as you earn (PAYE) income taxation rate varies from different class of earnings. The higher the wedges or the salary earned, the higher the statutory contribution percentage. Mostly they PAYE rate varies from the 10% to 30%. It is set in a way that it favours the employees with the smallest earning. 
It is the duty of every employer to calculate and make the necessary deductions on behalf of the employee and remit the contributions through the KRA Online Portal.

Common Myths About Life Insurance

Good or bad, myths contribute to high or low numbers signing up for life insurance. Is life insurance good for me? That's a question everyone should ask, in respect to the fact that all the information we hear about life insurance is not true or has been exaggerated. Many people generally think that life insurance kenya would be a good investment, but not so when it comes to signing up. Others think that you cannot negotiate a better rate and that you should always expect fill disclosure of commissions. Knowing the myths is important for those considering to b buy covers from medical insurance companies in Kenya or motor insurance cover in Kenya.   

1. You can't be turned down regardless of your illness: Do not believe these offers where an agent tells you so when purchasing covers from medical insurance companies in Kenya. Run away from situations where low-cost, no medical exam guaranteed-issue life policies are being sold. The truth is the company might contest that information and argue that you provided false information. Remember, only about 10 percent of people qualify for insurer's best rates available. 
 
2. Someone discloses commissions: It is not true because many argue that disclosing commissions, which run to 85 percent of first-year premiums and annual renewal commissions amounting to 7 percent, could kill sales. However, you should estimate the amount by comparing the first-year surrender value to first-year premium. The amount of money taken by the agent increases as the surrender value nears zero. However, medical insurance companies in Kenya will need you to purchase the cover so you can know this information. If it is possible, get a competing quote from companies that sell direct policies without commissions and compare the values. 

3. Life insurance is a good investment: Unfortunately, insurance is insurance and not investment, not even for motor insurance Kenya. Actually, many say that life insurance is sold not bought because, after all, you might not live to get the money. Another issue is that half of buyers drop out within 10 years into it and never get good returns for their money.          

Tips To Buy Life Insurance for the First Time

Insurance is one of the most preferred investment options today. Though there are several insurance policies available in the market, choosing the best among them can be quite a difficult task.

The two main areas of concern that a newbie at buying Life insurance in Kenya comes across is:

• Which company to opt for?
• Which insurance policy to invest in?

Here are some tips that can help you buy your first insurance policy:
 
Find the Need to Buy an Insurance Policy

Unlike other products, you are not the beneficiary of the benefits while buying an insurance policy. Especially when it is a whole life insurance, where the policy continues until the policyholder is alive. 

You can buy a life insurance policy if there is someone dependent upon you, who need to be secured financially for future. If there is no such obligation, you do not need to buy an insurance policy at all.

Find the Reason behind Buying an Insurance Policy

Many people buy life insurance to save tax and earn returns. If you also feel so, there are much better investment alternatives and tax saving options available out there. Life insurance has some unique features and it would be wise to consider it a bit different from just being an investment option. 

Find the Right Age of Investment

The younger you are, the cheaper a life insurance policy would cost you. However, it is essential that you consider how much you can pay as an important element while investing at a young age. 

Find a reliable company

Finding a well-established insurance company is not that difficult today. You can find hundreds of insurance companies online. Moreover, you can also search for the kind of services and policies they offer. Different insurance companies have varied set of rules and regulations when it comes to filing claims for insurance.

However, reliable insurance companies Kenya would make sure the customer is aware of different aspects of the insurance policy before investing. Moreover, they would aim to deliver a hassle free claim settlement upon maturity of the policy. 

Find the Right Insurance Policy

Many people are unaware about the types of life insurance policies available out there. Remember; never buy a life insurance policy just because your neighbor or relative has bought one. Always consider your needs before looking for an ideal life insurance policy. 

This is because you cannot undo such a crucial decision, once made. There are basically two types of policies that can be categorized as whole and term policies. While a whole life insurance Kenya policy covers the user until he is alive, the term life insurance policy is valid for a stipulated period of time only. You can consult your requirements with the insurance agent to allow him to filter the best policy suiting your needs. 

Lastly, coverage is also a crucial parameter while evaluating a life insurance policy. However, if you are not that good at determining the right amount of insurance cover you need, consulting a financial advisor or an insurer can be of great help in this situation. 

How to Keep your Car Insurance Affordable in Kenya

We all like to drive comfortable and pleasurable cars. Like health insurance in Kenya, car insurance Kenya can be expensive. However, you can make your car insurance affordable by observing a few guidelines listed below. It will save you some money and keep more risks at bay.   

1. Update the car security: Whether it means installing a car alarm, keeping the car in a safe location or merely installing a tracker sold by a recognized company, you can earn some reduction in premiums as a result of improving car security. 
  
2. Update the insurer of any modifications: Car insurers require that you inform them of any changes to car suspension, lights, wheel size and engine or other changes that can alter the car's performance. Informing the insurer will avoid circumstances where the insurer fails to cover modifications or imposing stringent conditions in case of a loss or accident.  
 
3. Buy within your financial ability: This ensures that you are able to maintain the car. The insurer will check the costs of vehicle parts, repair costs for components, vehicle security and performance. Never buy a car that you cannot afford to maintain and replace because it will increase car insurance cost in Kenya. It is the same case with health insurance Kenya because the cost is higher for those with existing health conditions than those who do not have. 

4. Stay away from trouble: The quote for car insurance in Kenya is more affordable the more years you drive without trouble and claims. Many people reduce the rate of claims by settling privately with other motorists (especially when the damage is minimal) when an accident occurs, instead of running to your insurer.

5. Keep your license clean: High risk drivers usually pay higher premiums in Kenya, so you might want to keep it clean if you have to pay lower premiums.

Remember that smart insuring, just as is the case with health insurance in Kenya, surpasses the lowest cost option so you may want to do your research on alternatives, see reviews about providers and compare amongst these providers.       

Benefits of Life Insurance

Life insurance brings in a lot of benefits to those who have signed up. It is important to weigh the benefits and costs of life insurance as is the case with car insurance in Kenya. 

While there are many local and international insurance companies providing life insurance cover in Kenya, their policies contain some differences here and there and so you may want to compare them. Comparing helps you to determine the most cost effective policy. You would want to check what range of damages they cover in their policies and how much premiums and deductibles they charge. 

In most cases, you can apply for life insurance very easily just as is the case with car insurance Kenya: you just fill in an online application form and submit. The period of processing will vary from one company to another. Before making an application, please check the cost of the policy. Some companies will also have an online insurance calculator that you can use to check the cost of coverage and premiums. 

If you are searching for the benefits you could get from a life insurance, then those benefits range from insuring yourself against damage to property, income and bills. 

Below are some of those benefits explained.  

1. Asset protection: After getting life insurance in Kenya, you stand to have your property and income protected to the interest of you and your family. Your property is protected against loss of income owing to illnesses and as a result of death of the policy holder. You also get an inbuilt wealth creation proposition. 

2. Goal based savings: We all have reasons for which we want to save money. Some people aspire to save for education, couples want to save for a new house, parents want to save for the upkeep of their children and others want to save for future financial safety. Life insurance provides such an opportunity. 

3. Source of income: It is very hard to adjust when a family member dies, and especially the income earner. The death benefits of the life insurance Kenya policy provides the family some money to adjust to income challenges as a result of such changes, some of which are unbearable. 

The family will keep running its obligations when such a situation comes. They will not have to stop education of their children or may be withdraw a member of family from care. The fact that they are getting some income from these benefits means they will not rush for aggressive options such as getting expensive quick loans or highly priced loans. 

The family does not have to stop running projects that insured had planned for before death. In addition to funding the home obligations, the proceeds can be used to fund purchase of a home or capital for a business.

4.Covers for funeral expenses: In many cases, those who sign up for life insurance in Kenya are hospitalized and so many have to incur high costs of treatment. Again, the family may be faced with very huge hospital bills after demise. In fact, in most cases, these obligations will run to several hundred thousands or more than a million shillings. Under such circumstances, the family can reach out to the insurer for help.