Employee Expense Reimbursement Form (Kenya)
EMPLOYEE EXPENSE REIMBURSEMENT FORM
Employment Act No. 11 of 2007 | Income Tax Act Cap. 470 | Tax Procedures Act No. 29 of 2015
Claim Reference: [Claim Reference] Date of Submission: [Submission Date]
SECTION A — EMPLOYEE DETAILS
Employee Name: [Employee Name]
Employee Number: [Employee Number]
Department: [Department]
Designation: [Designation]
Line Manager: [Line Manager]
SECTION B — EXPENSE PERIOD AND BUSINESS PURPOSE
Expense Period: [Expense Period Start] to [Expense Period End]
Business Purpose: [Business Purpose]
Pre-Authorisation Reference: [Pre-Authorisation Ref]
SECTION C — EXPENSE ITEMISATION
1. Travel (flights, taxi, fuel, parking): [Travel Expenses]
2. Accommodation: [Accommodation Expenses]
3. Meals and subsistence: [Meals Expenses]
4. Client entertainment: [Entertainment Expenses]
5. Communication (mobile, data): [Communication Expenses]
6. Office supplies / stationery: [Office Supplies]
7. Other expenses: [Other Expenses]
TOTAL AMOUNT CLAIMED: [Total Claimed]
Note: All receipts must be Electronic Tax Register (ETR) receipts, Electronic Tax Invoices (ETI), M-Pesa confirmation messages, or verifiable equivalents, in compliance with the Kenya Revenue Authority (KRA) requirements under the Tax Procedures Act No. 29 of 2015. Receipts must be attached to this form.
SECTION D — PAYMENT DETAILS
Preferred payment method: [Payment Method]
Bank account details: [Bank Account Details]
M-Pesa number: [M-Pesa Number]
SECTION E — EMPLOYEE DECLARATION
I, [Employee Name], hereby declare that:
(a) all expenses listed in Section C were incurred by me personally on genuine business activities on behalf of my employer;
(b) original receipts or verifiable documentation are attached for each expense item;
(c) no part of this claim has been previously reimbursed or claimed from any other source;
(d) I understand that submitting a false or inflated claim may constitute misconduct under Section 44 of the Employment Act No. 11 of 2007.
Employee Signature: ________________________ Date: ________________
SECTION F — APPROVAL
Line Manager Approval:
Name: [Line Manager] Signature: ________________________ Date: ________________
Finance Officer Approval:
Name: ________________________ Signature: ________________________ Date: ________________
Approved Amount (KES): ________________________ Payment Date: ________________
Finance Reference / Voucher Number: ________________________
Employee (Claimant)
________________
Signature
Line Manager
________________
Signature
What Is a Employee Expense Reimbursement Form (Kenya)?
An Employee Expense Reimbursement Form in Kenya is a formal document through which an employee claims repayment from their employer for out-of-pocket business expenses incurred on behalf of the organisation in the course of employment. The Employee Expense Reimbursement Form in Kenya is grounded in the Employment Act No. 11 of 2007, which in Section 10 requires employers to keep accurate records of all payments made to employees, and the Income Tax Act Cap. 470, which governs the tax treatment of employer reimbursements administered by the Kenya Revenue Authority (KRA).
The Employment Act No. 11 of 2007, administered by the Ministry of Labour and Social Protection, establishes that an employer must not make deductions from an employee's wages without written consent under Section 19, and correspondingly must reimburse an employee for legitimate business expenses incurred under the employer's authority. Where an employee spends personal funds on business travel, accommodation, meals, or other authorised expenses, the employer is obligated to refund those amounts in full without deduction.
The Income Tax Act Cap. 470, administered by the Kenya Revenue Authority (KRA), draws a critical distinction between reimbursements and allowances. A reimbursement — where the employee submits receipts and is refunded the exact amount spent on genuine business expenses — is not employment income and is not subject to Pay As You Earn (PAYE) deductions. An allowance paid as a flat sum irrespective of actual expenditure, such as a per diem or subsistence allowance, may be taxable as employment income if it exceeds the amounts prescribed by KRA guidelines. The KRA Public Notice on Tax Treatment of Allowances and Reimbursements provides guidance on which payments attract PAYE.
The Value Added Tax Act No. 35 of 2013 (VAT Act), administered by the KRA, is relevant for corporate expense reimbursements because VAT registered businesses may claim input tax on VAT-inclusive business expenses — such as hotel accommodation and professional services — where the employee submits a valid VAT receipt (Electronic Tax Invoice (ETI) or Electronic Tax Register (ETR) receipt) bearing the supplier's PIN and the purchaser's details. The Kenya Revenue Authority (KRA) requires employers to maintain ETR receipts as supporting documentation for tax compliance purposes.
The Public Procurement and Asset Disposal Act No. 33 of 2015 applies to government entities and state corporations, imposing specific requirements for expense documentation, prior authorisation, and compliance with travel and subsistence rates set by the Salaries and Remuneration Commission (SRC) or the parent ministry. Public sector employees must use the approved government rates published in Treasury Circulars.
The Occupational Safety and Health Act No. 15 of 2007 (OSHA) is relevant where an employee incurs medical expenses arising from a workplace injury during business travel. The Work Injury Benefits Act No. 13 of 2007 (WIBA), administered by the Directorate of Occupational Safety and Health Services (DOSHS), requires employers to maintain work injury insurance, and the Expense Reimbursement Form should not be used to claim WIBA-covered injuries — a separate WIBA claim should be filed with the insurer. Under Kenya law, Section 15 of the Employment Act 2007 (No. 11 of 2007) and Section 2 of the Law of Contract Act (Cap 23) govern the core requirements for this type of document.
When Do You Need a Employee Expense Reimbursement Form (Kenya)?
An Employee Expense Reimbursement Form in Kenya is required each time an employee incurs a personal expenditure in furtherance of the employer's business and seeks repayment of that expenditure from the organisation.
An Expense Reimbursement Form is needed after business travel — whether domestic travel between Kenyan counties or international travel — where the employee pays for flights, train tickets, Uber or taxi fares, fuel, road tolls, or parking using personal funds. The employee must submit original receipts or Electronic Tax Register (ETR) receipts to the accounts department, together with the completed reimbursement form, within the employer's stated claim period (typically 30 days of travel completion).
An Expense Reimbursement Form is required after an employee attends a conference, seminar, or training programme — whether organised by a professional body such as the Institute of Certified Public Accountants of Kenya (ICPAK), the Law Society of Kenya (LSK), or the Institute of Human Resource Management (IHRM) — and pays the registration fee, accommodation, and subsistence from personal funds.
An Expense Reimbursement Form is needed when a sales representative, field officer, or relationship manager incurs client entertainment expenses — business lunches, working dinners, or hospitality — within the employer's entertainment policy limits. The form must record the business purpose, the names of clients entertained, and the establishment visited to satisfy KRA audit requirements.
An Expense Reimbursement Form is required when an employee purchases office supplies, stationery, or minor equipment for immediate operational needs where the employer's procurement process would cause an unacceptable delay. The purchase must be within the employee's pre-authorised limit and supported by a receipt.
An Expense Reimbursement Form is needed when an employee uses a personal mobile phone for business calls or incurs data charges for remote work on behalf of the employer. Many Kenyan employers set a monthly mobile reimbursement cap and require the employee to submit the itemised bill or a self-declaration form.
An Expense Reimbursement Form is required in non-governmental organisations (NGOs) and faith-based organisations registered under the Non-Governmental Organisations Co-ordination Act Cap. 134 whose donor grants specify that expenditure must be documented with original receipts and approved expense forms to satisfy donor audit requirements from funders such as the United States Agency for International Development (USAID) or the European Union.
What to Include in Your Employee Expense Reimbursement Form (Kenya)
A Kenya Employee Expense Reimbursement Form must contain the following essential elements to be valid for employer approval, KRA audit, and financial record-keeping purposes under the Employment Act No. 11 of 2007 and the Income Tax Act Cap. 470.
Employee Identification: The employee's full name, employee number or staff ID, department, designation, and direct supervisor or line manager. The KRA PIN of the employee should be recorded where the reimbursement involves amounts that may attract withholding tax implications.
Claim Reference Number and Date: A unique sequential claim reference number assigned by the finance department, and the date on which the form is submitted. This enables traceability in the employer's accounting system and satisfies the record-keeping obligations under the Tax Procedures Act No. 29 of 2015, which requires businesses to maintain financial records for five years.
Expense Period: The start and end dates of the period during which the expenses were incurred. For travel-related claims, this should align with the travel dates stated in the approved travel request or mission order.
Expense Itemisation: Each expense line must state the date incurred, the expense category (travel, accommodation, meals and subsistence, client entertainment, office supplies, communication, or other), a brief description of the expense and its business purpose, the currency and amount, and whether a receipt has been attached. Receipts must be Electronic Tax Register (ETR) receipts, M-Pesa confirmation messages, bank statements, or other verifiable documentation accepted by the KRA.
Currency and Exchange Rate: Where expenses are incurred in a foreign currency during international travel, the form must record the foreign currency amount, the exchange rate applied (sourced from the Central Bank of Kenya (CBK) daily exchange rate or the employer's treasury rate), and the Kenya Shillings (KES) equivalent. Exchange rate gains or losses are recorded by the employer's finance team.
Pre-Authorisation Reference: The name and signature of the manager who approved the travel or expenditure in advance, or the reference number of the approved purchase order or mission order. Many Kenyan employers — particularly multinational corporations and state corporations — require prior written authorisation before expenses are incurred.
Total Claimed and Payment Method: The total amount claimed in Kenya Shillings (KES), the employee's preferred payment method (bank transfer to a named account, M-Pesa to a registered number, or office cheque), and the employee's bank account details or M-Pesa number for EFT payment.
Employee Declaration: A signed declaration by the employee confirming that all expenses listed are legitimate business expenses incurred by the employee personally, that original receipts are attached, and that no portion of the claim has been previously reimbursed or claimed from any other source.
Approval Chain: Signature lines for the line manager, the finance officer, and where required by the employer's authority matrix, the Chief Finance Officer (CFO) or Head of Finance. State corporations must also comply with Treasury Circular approval levels for expenditure.
The forms-legal.com Kenya Employee Expense Reimbursement Form template incorporates all KRA-compliant documentation fields and is structured to satisfy the record-keeping requirements of the Tax Procedures Act No. 29 of 2015 and the Income Tax Act Cap. 470. Under Kenya law, Section 15 of the Employment Act 2007 (No. 11 of 2007) and Section 2 of the Law of Contract Act (Cap 23) govern the core requirements for this type of document.
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note = {Free legal document template}
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Frequently Asked Questions
Employee expense reimbursements in Kenya are generally not subject to Pay As You Earn (PAYE) income tax under the Income Tax Act Cap. 470, provided three conditions are met: the expense was a genuine business expense incurred on behalf of the employer, the employee has submitted original receipts or verifiable proof of expenditure, and the employer reimburses only the actual amount spent — no more. Where the employer pays a flat per diem or subsistence allowance without requiring receipts, the Kenya Revenue Authority (KRA) may treat the allowance as employment income subject to PAYE, particularly where the per diem exceeds the KRA-published daily rates for domestic and international travel. Employers should therefore require employees to submit receipted expense claims rather than paying blanket allowances, and maintain clear written policies distinguishing between reimbursements and taxable allowances. KRA auditors routinely examine expense reimbursement records during tax audits, and employers who cannot produce receipts and approved reimbursement forms risk being assessed for PAYE on unsubstantiated payments under the Tax Procedures Act No. 29 of 2015.
The Kenya Revenue Authority (KRA) accepts Electronic Tax Register (ETR) receipts and Electronic Tax Invoice (ETI) receipts generated by VAT-registered suppliers as primary documentation for business expense claims. Since September 2022, all VAT-registered businesses in Kenya are required to use KRA-compliant ETR machines or the online electronic invoicing system to generate receipts that carry a unique QR code verifiable on the KRA iTax portal. For expenses paid via M-Pesa — such as hotel accommodation, taxi fares, or supplier payments — the M-Pesa confirmation SMS or the M-Pesa statement from Safaricom is accepted as supplementary evidence, though not as a VAT invoice. For international travel, foreign receipts such as airline boarding passes, hotel folios, and foreign restaurant receipts are accepted, together with a currency conversion statement. Handwritten receipts from informal suppliers are generally not accepted by KRA for PAYE exemption purposes. Employers should establish a written expense policy requiring ETR receipts as the primary acceptable form of documentation to avoid disputes during KRA tax audits conducted under the Tax Procedures Act No. 29 of 2015.
The Employment Act No. 11 of 2007 does not specify a statutory deadline for processing employee expense reimbursement claims, but the employer's obligation to pay wages and entitlements promptly under Section 17 of the Employment Act implies that legitimate expense claims should be settled within a reasonable period. Most Kenyan employers adopt a 30-day processing cycle aligned with the monthly payroll run, so that expenses submitted by the end of one month are reimbursed with or alongside the following month's salary payment. Some organisations process expense claims on a weekly or fortnightly basis where field officers incur frequent out-of-pocket costs. An employer who unreasonably delays reimbursement of genuine business expenses risks a complaint to the Labour Officer under Section 87 of the Employment Act No. 11 of 2007, or a claim before the Employment and Labour Relations Court (ELRC) for breach of the employment contract. A well-drafted employee expense policy should specify the submission deadline, the approval timeline at each level, and the payment date to set clear expectations for all employees.
An employer in Kenya may refuse to reimburse an employee's claimed expense where the expense was not a genuine business expense, was not authorised under the employer's expense policy, was not supported by valid receipts, or was incurred outside the employee's scope of duties. However, where the employer expressly or impliedly authorised the employee to incur the expense on behalf of the business — for example, by requesting the employee to travel for a client meeting or to purchase supplies — refusal to reimburse is a breach of the employment contract and may constitute an unlawful deduction from the employee's entitlements under Section 19 of the Employment Act No. 11 of 2007. The Employment and Labour Relations Court (ELRC) has jurisdiction to order an employer to pay unreimbursed business expenses as part of a general claim for unpaid employment entitlements. Employers should maintain a clear written expense policy — incorporated into the employee handbook — that defines authorised expense categories, expenditure limits per category, pre-approval requirements, and the consequences of submitting false or inflated claims, which may constitute misconduct under Section 44 of the Employment Act No. 11 of 2007.
A reimbursement is a retrospective payment by the employer to an employee who has already spent personal funds on a business expense and submitted receipts as proof. An imprest — sometimes called a petty cash advance or travel advance — is a prospective advance of employer funds given to an employee before the expense is incurred, which the employee is expected to spend on authorised business purposes and account for within a specified period (typically 7 to 14 days after return from travel). Under the imprest system, the employee submits receipts for actual expenditure, returns any unspent balance to the cashier, and signs an imprest settlement form. If the actual expenditure exceeds the advance, the employer pays the balance as a reimbursement. If the advance exceeds actual expenditure and the employee fails to return the balance, the employer may treat the unaccounted amount as an advance to the employee and may deduct it from future salary with the employee's written consent under Section 19 of the Employment Act No. 11 of 2007. Both reimbursements and imprests require original receipts and an approved expense or imprest settlement form for KRA compliance under the Tax Procedures Act No. 29 of 2015.
Non-governmental organisations (NGOs) registered under the Non-Governmental Organisations Co-ordination Act Cap. 134 and regulated by the NGO Co-ordination Board face additional expense documentation requirements beyond those applicable to private sector employers, primarily driven by donor compliance obligations. Most bilateral and multilateral donors — including USAID, the European Union, the United Kingdom Foreign, Commonwealth and Development Office (FCDO), and the Global Fund — require NGO implementing partners to follow donor-specific financial management guidelines that mandate original receipts for all expenditures above a minimum threshold (often USD 25 or its KES equivalent), pre-approved travel requests for any out-of-station travel, and certified expense reports signed by both the claimant and the finance officer. Donor auditors — whether from the Office of the Auditor General of Kenya or international audit firms — examine expense files during programme audits, and unsupported expenses may result in disallowances that the NGO must refund to the donor from its own resources. The Public Finance Management Act No. 18 of 2012 (PFMA) applies to NGOs that receive government grants or manage public funds, imposing additional financial reporting and accountability requirements administered by the National Treasury.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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