The Kenya Revenue Authority (KRA) has clarified the conditions under which school fees can be treated as allowable tax deductions.
This comes after a public inquiry on social media over whether education expenses qualify for tax relief during income tax calculations.
An X user, @ngatia27, posed the question: “KRACare quickly, I am already working. I decided to go back to school to boost my skills and hopefully my pocket. Are the school fees I am paying an allowable deduction? Are institutions of higher learning required to issue ETIMs?”
KRA Says School Fees for Skills Development Can Be Claimed as Tax Deductions
While responding through its official customer care channel, KRA stated that upskilling or skill development can be deducted during tax calculations.
KRA further explained that school fees may only qualify as allowable deductions where the course of study is directly connected to skills development that supports a taxpayer’s business or professional activities.
The taxman emphasized that institutions of higher learning are required to issue electronic Tax Invoice Management System (eTIMS) invoices for tuition payments.
This is in line with existing tax compliance regulations.
“Hi Ngatia, yes, they should issue an eTIMS invoice. It becomes an allowable deduction if the program is geared for skill development to boost the business,” KRA said.
The clarification means that not all education-related expenses automatically qualify for tax relief.
Instead, eligibility depends on whether the training or academic programme contributes to improving professional competence, enhancing productivity, or strengthening business operations.
At the core of this tax relief framework is Section 15 of the Kenyan Income Tax Act, which provides that only expenses “wholly and exclusively incurred in the production of income” qualify as deductible.
While this principle has traditionally been applied in corporate tax assessments, the authority has clarified that it also applies to individual taxpayers, including salaried employees and independent consultants, where education is directly linked to income generation.
Also Read: KRA Explains Business eTIMS Invoice Rules Ahead of June Deadline
What Qualifies as Deductible Upskilling and What Does Not
Under the guidelines, deductible training includes professional development that directly improves work performance or business output.
These include a certified public accountant pursuing advanced forensic auditing certification, a registered nurse undertaking a specialized pediatric care diploma, or a software engineer enrolling in a cybersecurity bootcamp required for their role.
However, KRA has clarified that certain education expenses do not qualify for tax relief.
These include a marketing executive pursuing an unrelated degree in culinary arts, general primary or secondary school fees, and any academic programme that is not directly linked to the taxpayer’s current profession or income activity.
Also Read: KRA Advises Taxpayers on What to Do After eTIMS Tax Return Rejections
How to File for a Claim
Before making a claim, taxpayers must demonstrate a clear connection between the course undertaken and their current job role.
The authority places the burden of proof on the taxpayer, who must show that the skills acquired are actively applied in generating income.
Supporting documents may include official fee receipts from recognized institutions, admission letters outlining course content, and employer confirmation that the training is relevant to the employee’s duties.
Self-employed individuals must provide evidence showing how the skills support their business operations.
To claim the deduction, taxpayers must file their annual returns via the iTax platform at itax.kra.go.ke.
After logging in with a KRA PIN, users go to the “Returns” section and select the appropriate option to declare allowable expenses.
