Where an employer provides all its employees (including directors) 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:

1. 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 Minister from time to time. The current limit is Kshs.1,000,000 per year.
2. The medical insurance must be provided by a provider who is approved by the Commissioner of Insurance.