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Kenya Salary & PAYE Tax Calculator

Calculate monthly take-home pay, KRA PAYE tax, NSSF Tier I & II (Year 4 rate), SHIF (2.75%), and Affordable Housing Levy under the Tax Laws (Amendment) Act 2024 in Kenya.

Jurisdiction:
🇺🇸 United States 🇪🇹 Ethiopia (ETB) 🇰🇪 Kenya (KES) 🇳🇬 Nigeria (NGN) 🇿🇦 South Africa (ZAR)
Quick Scenarios
Contractual monthly base salary in Kenya Shillings (KES).
Taxable cash allowances such as overtime, performance bonus, and telephone stipend.
Statutory exempt allowances (e.g. valid per diems or exempt travel reimbursement).
Tax-deductible registered pension or provident fund contributions (up to KSh 20,000/mo combined).
Personal payroll deductions such as SACCO contributions, staff loans, or welfare.
NSSF Act 2013 Third Schedule progressive implementation years.

Net Take-Home Pay: 72.9% of Gross Salary

From monthly gross earnings of KSh 80,000.00, total deductions equal KSh 21,703.33 (KSh 14,103.33 PAYE + KSh 4,200.00 NSSF + KSh 2,200.00 SHIF + KSh 1,200.00 Housing Levy). Net take-home pay is KSh 58,296.67.

Net Take-Home Pay (Monthly) KSh 58,296.67
Net Take-Home Pay (Annual) KSh 699,560.04
PAYE Tax (Net Tax Payable) KSh 14,103.33
NSSF Employee Contribution KSh 4,200.00
SHIF (Health 2.75%) KSh 2,200.00
Affordable Housing Levy (1.5%) KSh 1,200.00
Statutory Personal Relief KSh 2,400.00
Taxable Employment Pay KSh 72,400.00
Gross Monthly Earnings KSh 80,000.00
Employer Total Cost (CTC) KSh 85,400.00
Effective PAYE Tax Rate 17.6%
Editorial Standard

GetCalcu Methodology & Editorial Standards

Reviewed: October 2026

Kenya Revenue Authority (KRA) Income Tax Act (Cap. 470), Finance Act, Tax Laws (Amendment) Act 2024, NSSF Act 2013 (Third Schedule), SHIF Act 2023 & Affordable Housing Act 2024.

Key Modeling Assumptions:

  • Employee receives standard statutory personal relief of KSh 2,400 per month (KSh 28,800 per year).
  • Under the Tax Laws (Amendment) Act 2024, NSSF, SHIF (2.75%), and the Affordable Housing Levy (1.5%) are allowable pre-tax deductions that reduce gross earnings to calculate Taxable Pay before progressive PAYE bands are applied.
  • NSSF contributions default to Year 4 rates under the NSSF Act 2013 Third Schedule (Tier I cap KSh 540 on 9,000; Tier II cap KSh 5,940 on 108,000; combined maximum KSh 6,480/month).
Reference Sources: Kenya Revenue Authority (KRA) PAYE Regulations & Guidelines • National Social Security Fund (NSSF Act 2013 Third Schedule) • Social Health Authority (SHIF Guidelines & Contribution Schedule) • Affordable Housing Act 2024 & Tax Laws (Amendment) Act 2024

Complete Guide to Kenya PAYE, NSSF Year 4, SHIF, and Housing Levy Deductions

In Kenya, payroll calculations are governed by the Income Tax Act (Cap. 470) administered by the Kenya Revenue Authority (KRA), alongside statutory contributions under the NSSF Act 2013, the Social Health Insurance Act (SHIF) 2023, and the Affordable Housing Act 2024 as amended by the Tax Laws (Amendment) Act 2024. This guide explains how gross earnings are converted into net take-home pay under the latest statutory sequence.

KRA PAYE Tax Brackets & Allowable Deductions Sequence

Under the Tax Laws (Amendment) Act 2024, statutory contributions to NSSF, SHIF (2.75%), and the Affordable Housing Levy (1.5%) are classified as allowable deductions from gross taxable income before applying progressive PAYE bands. The progressive bands apply to the resulting Taxable Pay: first KSh 24,000 at 10%; next KSh 8,333 at 25%; next KSh 467,667 at 30%; next KSh 300,000 at 32.5%; and any amount over KSh 800,000 at 35%.

Personal Relief and Net PAYE Computation

Every Kenyan resident employee is entitled to a statutory Personal Relief of KSh 2,400 per month (KSh 28,800 per year). Because NSSF, SHIF, and Housing Levy are now deducted pre-tax from income, personal relief is subtracted directly from gross PAYE to determine final net PAYE liability payable to the KRA.

NSSF Pension Contributions: Year 4 Implementation

Under the Third Schedule of the NSSF Act No. 45 of 2013, contribution ceilings increase annually. For Year 4 (effective February 2026), the Lower Earnings Limit (Tier I) is KSh 9,000, resulting in a maximum employee contribution of KSh 540 (6%). The Upper Earnings Limit (Tier II) is KSh 108,000, yielding a maximum Tier II contribution of KSh 5,940 (6% on KSh 9,001 to KSh 108,000). Total combined employee NSSF is capped at KSh 6,480 per month, matched equally by the employer.

SHIF Health Insurance and Affordable Housing Levy

The Social Health Insurance Fund (SHIF) replaced the former NHIF flat schedule with a proportional contribution of 2.75% of gross monthly salary (minimum KSh 300/mo) with no upper cap. The Affordable Housing Levy (AHL) requires an employee contribution of 1.5% of gross salary matched by a 1.5% employer contribution.

How to Use the Kenya Salary & PAYE Tax Calculator

  1. 1
    Enter your Monthly Basic Salary in Kenya Shillings (KES).
  2. 2
    Add any monthly Taxable Cash Allowances (such as overtime or performance bonuses).
  3. 3
    Add any Non-Taxable Allowances that qualify for statutory exemptions under KRA rules.
  4. 4
    Enter voluntary contributions to registered pension schemes (tax-deductible up to KSh 20,000/mo combined with NSSF).
  5. 5
    Select the NSSF implementation schedule (Year 4 active, Year 3, or Year 2 historical).
  6. 6
    Review your net take-home salary, PAYE tax, NSSF, SHIF, Housing Levy, and employer liabilities.

Kenya Salary & PAYE Tax Calculator Formula

Taxable Pay = Gross − Allowable Deductions (NSSF + Pension + SHIF + Housing Levy); Net Pay = Gross − PAYE (Gross Tax − KSh 2,400 Relief) − NSSF − SHIF − Housing Levy − Other Deductions

Real-World Worked Examples

These scenarios demonstrate how key input parameters alter your calculation outcome.

Entry-Level Worker (KSh 24,000 Gross) — Year 4 Active Law

Input: Basic Salary: KSh 24,000, Zero Allowances
Result: Net Pay: KSh 21,540.00/mo | PAYE: KSh 0.00 | NSSF: KSh 1,440.00 | SHIF: KSh 660.00 | AHL: KSh 360.00

Under Year 4, NSSF is KSh 1,440 (Tier I: 540 + Tier II: 900). SHIF is KSh 660 (2.75%) and AHL is KSh 360 (1.5%). Allowable deductions total KSh 2,460, leaving taxable pay of KSh 21,540. Gross PAYE is KSh 2,154, fully covered by KSh 2,400 personal relief. Net PAYE is KSh 0.

Mid-Level Professional (KSh 80,000 Gross: 70k Basic + 10k Allowance)

Input: Basic Salary: KSh 70,000, Taxable Allowance: KSh 10,000
Result: Net Pay: KSh 58,296.67/mo | PAYE: KSh 14,103.33 | NSSF: KSh 4,200.00 | SHIF: KSh 2,200.00 | AHL: KSh 1,200.00

Basic salary 70,000 yields NSSF of KSh 4,200. SHIF on 80k is KSh 2,200; AHL is KSh 1,200. Pre-tax allowable deductions total KSh 7,600, giving Taxable Pay of KSh 72,400. Gross PAYE is KSh 16,503.33 minus KSh 2,400 personal relief = KSh 14,103.33 Net PAYE. Take-home pay is KSh 58,296.67.

Executive Salary (KSh 250,000 Gross: 200k Basic + 50k Allowance)

Input: Basic Salary: KSh 200,000, Taxable Allowance: KSh 50,000
Result: Net Pay: KSh 170,643.17/mo | PAYE: KSh 62,251.83 | NSSF: KSh 6,480.00 | SHIF: KSh 6,875.00 | AHL: KSh 3,750.00

NSSF is capped at Year 4 max KSh 6,480. SHIF is KSh 6,875 and AHL is KSh 3,750. Allowable deductions of KSh 17,105 reduce taxable pay to KSh 232,895. Net PAYE is KSh 62,251.83. Employer CTC is KSh 260,230.

Frequently Asked Questions

How is PAYE calculated in Kenya under the Tax Laws (Amendment) Act 2024?

PAYE is calculated on Taxable Pay after subtracting allowable statutory deductions: NSSF, SHIF (2.75%), and the Affordable Housing Levy (1.5%). Progressive tax rates (10% to 35%) are applied to this net figure, and statutory personal relief (KSh 2,400/mo) is deducted to determine final PAYE payable.

What are the NSSF contribution limits for Year 4 (2026)?

Under the NSSF Act 2013 Third Schedule, Year 4 increases the Lower Earnings Limit (LEL) to KSh 9,000 (max Tier I contribution KSh 540) and the Upper Earnings Limit (UEL) to KSh 108,000 (max Tier II contribution KSh 5,940). The total maximum employee contribution is KSh 6,480 per month, matched equally by the employer.

Are SHIF and Affordable Housing Levy pre-tax deductions in Kenya?

Yes. Under the Tax Laws (Amendment) Act 2024, employee contributions to SHIF (2.75%) and the Affordable Housing Levy (1.5%) are deductible from gross employment income before calculating PAYE income tax, reducing overall taxable income.

Can I still calculate Kenya payroll using historical 2024 rates?

Yes. GetCalcu allows you to select historical NSSF schedules (Year 2 or Year 3) and calculation frameworks to reconcile previous payroll periods.

What is the standard personal relief in Kenya?

Every resident employee is entitled to standard statutory personal relief of KSh 2,400 per month (KSh 28,800 per year), which directly offsets gross PAYE tax liability.