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Employers to Pay More Tax in New Proposed Bill

April 18, 2024
Reading Time: 3 mins read
Walking To Work

Nairobi residents walking to work. PHOTO/Courtesy.

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The Workers Injury Compensation Bill 2024 is seeking to establish a fund called the Workers Compensation Fund for Kenyan employees in case of injuries.

If implemented, the bill will be partly funded by employers through mandatory contributions that will be issued as compensation for employees who contract occupational diseases arising out of, and in the course of their employment. 

Additionally, the bill explains that the fund will go towards compensating dependents of Kenyan employees in the case of death. 

Other contributors of the fund will include monies appropriated by Parliament, grants or donations, proceeds from investments of the funds and subvention from the Government.

Kenyans Nairobi
Kenyans walking in Nairobi. PHOTO/Courtesy

“The sources of funds for the Fund shall consist of monies appropriated by Parliament, any subvention from the Government, employers’ mandatory contributions, grants or donations, proceeds from investments of the funds,

“Accumulated surplus or retained earnings; any penalty imposed under this Act, other than by a court; and such monies as may be payable to the Fund pursuant to this Act or any other written law,” the draft Bill reads in part.

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Also Read: Ruto Moves to Make Housing Fund Constitutional in New Bill


Other Objectives of the Compensation Fund in New Bill

Furthermore, the proposed bill detailed that the fund would provide for the rehabilitation of employees who have suffered occupational injuries. 

Or, employees who have contracted occupational diseases, to assist in restoring their health and independence and participation at work.

Also, it is meant to “provide for a framework for the effective, prompt and empathetic consideration, settlement and payment of compensation benefits to employees and their dependents.

The Bill proposed that the Headquarters of the Fund be in Nairobi and the Fund extends its services to all parts of the Republic in accordance with the Constitution.


Also Read: Govt Issues Ultimatum to Employers Over Payrise for Watchmen

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Right to Compensation for Occupational Injury

The Act will be implemented when an employee has an accident resulting to disablement or death.

“The employee or the dependents of the employee shall, subject to the provisions of this Act, be entitled to the compensation provided under this Act,” the Bill states. 

On the other hand, where an accident is attributable to the serious or willful misconduct of the employee, no compensation shall be payable.

In addition, the Director General may, on behalf of the Fund, pay the whole or any portion of the cost of medical aid in respect of such accidents.

“Where the Director-General believes that an employee at the time of an accident was acting for the purposes, or in the interests of, or in connection with the business of an employer,

“The accident shall, for the purposes of this Act, be deemed to have arisen out of, and in the course of employment of the employee, notwithstanding that the employee was at the time of the accident,” it explains. 

Senate
Parliament of Kenya. PHOTO/Senate of Kenya
Tags: EmployersMandatory DeductionsWorkers Compensation FundWorkers Injury Compensation Bill 2024

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