Calculate Mr. Ochieng's monthly income tax in Kenya Shillings and his annual taxable income in Kenya Pounds.

The housing benefit is typically 15% of the basic salary.

$$\text{Housing Benefit} = 15\% \times \text{Ksh. } 15,000 = 0.15 \times 15,000 = \text{Ksh. } 2,250$$

Since he pays a nominal rent of Ksh. 1,250 per month, the taxable housing benefit is:

$$\text{Taxable Housing Benefit} = \text{Ksh. } 2,250 - \text{Ksh. } 1,250 = \text{Ksh. } 1,000 \text{ per month}$$

$$\text{Total Monthly Taxable Income} = \text{Basic Salary} + \text{Taxable Housing Benefit}$$ $$\text{Total Monthly Taxable Income} = \text{Ksh. } 15,000 + \text{Ksh. } 1,000 = \text{Ksh. } 16,000 \text{ per month}$$

p.a.).

$$\text{Annual Taxable Income (Ksh.)} = \text{Ksh. } 16,000 \times 12 = \text{Ksh. } 192,000 \text{ p.a.}$$

(Note: $1 \text{ K£} = 20 \text{ Ksh.}$)

$$\text{Annual Taxable Income (K£)} = \frac{\text{Ksh. } 192,000}{20} = \text{K£ } 9,600 \text{ p.a.}$$

His taxable income in K£p.a. is $\boxed{\text{K£ 9,600}}$.

• Band 1: $1 - 2300 \text{ K£}$ at $2 \text{ Ksh/£}$ $$\text{Tax} = (2300 - 1 + 1) \times 2 = 2300 \times 2 = \text{Ksh. } 4,600$$
• Band 2: $2301 - 4600 \text{ K£}$ at $3 \text{ Ksh/£}$ $$\text{Tax} = (4600 - 2301 + 1) \times 3 = 2300 \times 3 = \text{Ksh. } 6,900$$
• Band 3: $4601 - 6900 \text{ K£}$ at $5 \text{ Ksh/£}$ $$\text{Tax} = (6900 - 4601 + 1) \times 5 = 2300 \times 5 = \text{Ksh. } 11,500$$
• Band 4: $6901 - 9200 \text{ K£}$ at $7 \text{ Ksh/£}$ $$\text{Tax} = (9200 - 6901 + 1) \times 7 = 2300 \times 7 = \text{Ksh. } 16,100$$
• Band 5: $9201 - 11500 \text{ K£}$ at $9 \text{ Ksh/£}$ Mr. Ochieng's taxable income is $9600 \text{ K£}$. The amount falling into this band is: $$9600 - 9200 = 400 \text{ K£}$$ $$\text{Tax} = 400 \times 9 = \text{Ksh. } 3,600$$

Total Gross Annual Tax:

$$\text{Gross Annual Tax} = 4600 + 6900 + 11500 + 16100 + 3600 = \text{Ksh. } 42,700$$

• Personal relief: Ksh. 1,056 per month
• Insurance relief: Ksh. 270 per month

$$\text{Total Monthly Relief} = 1056 + 270 = \text{Ksh. } 1,326$$ $$\text{Total Annual Relief} = 1326 \times 12 = \text{Ksh. } 15,912$$

$$\text{Net Annual Tax} = \text{Gross Annual Tax} - \text{Total Annual Relief}$$ $$\text{Net Annual Tax} = \text{Ksh. } 42,700 - \text{Ksh. } 15,912 = \text{Ksh. } 26,788$$

$$\text{Net Monthly Tax} = \frac{\text{Ksh. } 26,788}{12} = \text{Ksh. } 2,232.333...$$

Rounding to two decimal places:

$$\text{Net Monthly Tax} = \text{Ksh. } 2,232.33$$

The amount of tax he pays per month in Kenya shillings is $\boxed{\text{Ksh. 2,232.33}}$.