Calculate Mr. Odongo's monthly PAYE tax given his basic salary, house allowance, and affordable housing deduction.

The taxable income is Ksh. 231,750. We apply the tax rates to each band:

• First Ksh. 11,180 at 10%:

$$0.10 \times 11,180 = \text{Ksh. } 1,118$$

• Next Ksh. $(21,714 - 11,180) = 10,534$ at 15%:

$$0.15 \times 10,534 = \text{Ksh. } 1,580.10$$

• Next Ksh. $(32,248 - 21,714) = 10,534$ at 20%:

$$0.20 \times 10,534 = \text{Ksh. } 2,106.80$$

• Next Ksh. $(42,782 - 32,248) = 10,534$ at 25%:

$$0.25 \times 10,534 = \text{Ksh. } 2,633.50$$

• Remaining income Ksh. $(231,750 - 42,782) = 188,968$ at 30%:

$$0.30 \times 188,968 = \text{Ksh. } 56,690.40$$

Total Gross Tax = $1,118 + 1,580.10 + 2,106.80 + 2,633.50 + 56,690.40 = \text{Ksh. } 64,128.80$

• Insurance relief: 15% of premiums paid (Ksh. 25,000), subject to a maximum of Ksh. 3,000.

$$0.15 \times 25,000 = \text{Ksh. } 3,750$$

Since Ksh. 3,750 is greater than the maximum relief of Ksh. 3,000, the insurance relief is Ksh. 3,000.

• Monthly personal relief: Ksh. 1,600. Total Relief = Insurance Relief + Personal Relief Total Relief = Ksh. $3,000 + \text{Ksh. } 1,600 = \text{Ksh. } 4,600$

$$\text{Net Tax} = \text{Gross Tax} - \text{Total Relief}$$ $$\text{Net Tax} = \text{Ksh. } 64,128.80 - \text{Ksh. } 4,600$$ $$\text{Net Tax} = \text{Ksh. } 59,528.80$$

Rounding to the nearest shilling:

$$\text{Net Tax} = \text{Ksh. } 59,529$$

Odongo's net salary.
First, calculate total gross earnings.

$$\text{Total Gross Earnings} = \text{Basic Salary} + \text{House Allowance}$$ $$\text{Total Gross Earnings} = \text{Ksh. } 150,500 + \text{Ksh. } 85,000 = \text{Ksh. } 235,500$$

Next, calculate total deductions.

$$\text{Total Deductions} = \text{Affordable Housing Programme} + \text{Net Tax} + \text{Cooperative Share} + \text{Cooperative Loan}$$ $$\text{Total Deductions} = \text{Ksh. } 3,750 + \text{Ksh. } 59,529 + \text{Ksh. } 12,000 + \text{Ksh. } 35,000$$ $$\text{Total Deductions} = \text{Ksh. } 110,279$$

Finally, calculate net salary.

$$\text{Net Salary} = \text{Total Gross Earnings} - \text{Total Deductions}$$ $$\text{Net Salary} = \text{Ksh. } 235,500 - \text{Ksh. } 110,279$$ $$\text{Net Salary} = \text{Ksh. } 125,221$$