4.5 Company cars
The employee BIK of the use of a company car is specified in the Kenyan Income Tax Act, section 5(2B), (2C).
Where a leased or hire vehicle is provided to an employee, the lease or hire price is the assessable BIK.
If the employer owns the vehicle, the employee's monthly BIK is the higher of:
• 2% of the purchase price (the employer's initial capital expenditure) of the vehicle
• the scale rate (see below) based on the engine size and type of vehicle
Note that because the 2% value is calculated on the capital expenditure that
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