Sometimes, it happens that we don't have enough money to invest not because we aren't maximizing on what we earn, but because we're not minimizing on the "wastage" (i.e. TAX)

Consequently, i had to hit the e-books and get schooled on how to invest better. Here's what i've realized (a bit late, but better than never)...

i)Set up an individual pension plan and get up to Ksh. 20,000 tax deductible on contributions. (This i already knew.) The nice part is that i can access this amount before retirement to buy a home.

ii) Set up a home ownership savings account with e.g HFCK and there's no PAYE applied on amounts saved to a maximum of Ksh 4000 per month or Ksh 48000 per annum.

That's Ksh288,000 that the taxman won't touch!!! Not to mention the interested that compounds on this principal amount over the years.

Any other ways anyone knows that I need to know about?....

Yep, the amount does earn you interest. The level, however depends on who you're registered with and the terms of their home ownership plan.

HFCK's base rate of 7% isn't much to write home about.....

Anyone with an S&L account? I'd be interested to know what their interest rates on this look like.

Life insurance premiums tax deductible upto ksh 60,000 a year or 15% whichever is less.

@savant. What does tax deductible 20,000 mean, exactly? And if i have saved to buy a home, when i cash out, will anything bind me, to buy the home?

The insurance cover must be 10 years or longer. medical cover is only one year, so it doesn't qualify for this relief.

But you can include children's education covers etc, as long as they are at least ten years long