What is the Expense Reimbursement process in Kenya?

Modified on: Mon, 22 Sep, 2025 at 6:27 PM

TABLE OF CONTENTS

Key Steps for Reimbursement
Reimbursable Expenses
Invoicing & Documentation
Non-Reimbursable Expenses
Important Reminders

Horizons is committed to reimbursing employees for legitimate business expenses in accordance with company policy and Kenyan regulations. Please follow the steps and guidelines below to ensure your claims are processed efficiently and tax-free.

Key Steps for Reimbursement

1. Invoice Addressing

All invoices for work expenses must be addressed to HOR Global Kenya Limited.
This is required for review, approval, and tax compliance.

2. Approval Process

Submit your invoices to Horizons for review.
Documentation will be checked for compliance and to verify the business purpose.

3. Submission of Original Receipts

After approval, submit original receipts to Horizons.
Electronic copies may be submitted initially, but originals are required for final approval and record-keeping.

4. Payment Processing

Once receipts are approved, reimbursement will be processed.
Payment will be reflected in your next payroll cycle or as per company policy.

Reimbursable Expenses

The following categories are typically eligible for reimbursement:

Travel Expenses:
Transportation (flights, taxis, buses, trains, trams, rental cars), accommodation, and meals during business travel.

No specific rules apply to air, bus, train, tram, taxi/cab, or rental car travel.
No restrictions or caps on business travel expenses, as long as they are supported and in line with business needs.

Mileage Reimbursement:

The mileage reimbursement rate per kilometer can be calculated using the AA Kenya Mileage Calculator.
Parking tickets and tolls must be reported as separate expenses with receipts, not as part of the mileage log.

Office Supplies and Equipment:mn Costs for work-related tools, materials, or equipment.

Per Diems:
Daily allowances for meals, lodging, and incidental expenses during work travel.

Per diems are not taxable up to a maximum of KES 10,000. Any extra amount not supported by receipts is taxed to the employee.
National and international per diem rates for 2025 follow this cap.

Client Entertainment or Gifts: Expenses for business events, team gatherings, or client entertainment are allowable tax expenses if incurred to promote the business.

Invoicing & Documentation

Required Documentation: All business expenses must be supported by invoices or other supporting documents in the company’s name.

Horizons must be listed on all invoices for the refund to be tax-free.
No threshold: Invoices are always required, regardless of the amount.
Expenses must be incurred solely for business purposes.

Tax-Free Reimbursement: All expenses can be reimbursed tax-free if they are business-related and properly documented.

VAT is applicable on reimbursable expenses in Kenya.
Keep original receipts until your reimbursement is confirmed.
Ensure all expenses comply with company policy and are properly documented.

Non-Reimbursable Expenses

Health or Wellness-Related Expenses:
Medical bills, gym memberships, therapy, yoga, swimming, etc., are not reimbursable by staff claims. These may only be incurred by the entity on behalf of employees as part of social welfare programs.

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Kenya