PAYE Calculator Kenya 2026
Use this free PAYE calculator for Kenya to work out PAYE, NSSF, SHIF, Housing Levy and net pay from a monthly salary, using the current KRA tax bands and statutory rates.
Rates updated: 11 October 2026 · Finance Act 2026 (no change to PAYE bands) · NSSF Year 4 rates from February 2026
Rates as at 11 October 2026 · fnjassociates.co.ke/paye-calculator-kenya/
Estimated net pay
KES 0Rates: February 2026 onwards
Your payslip
| Gross cash pay | |
| PAYE | |
| NSSF Tier I (6% up to KES 9,000) | |
| NSSF Tier II (6% from KES 9,001 to 108,000) | |
| SHIF (2.75%, minimum KES 300) | |
| Affordable Housing Levy (1.5%) | |
| Pension contribution | |
| Post-retirement medical fund | |
| Rent paid to employer | |
| Total deductions | |
| Net pay |
How your PAYE was worked out
| Gross cash pay | |
| Add taxable non-cash benefits | |
| Add housing benefit | |
| Less allowable deductions | |
| Taxable pay | |
| Tax on the bands | |
| Less personal relief | |
| Less insurance relief | |
| PAYE |
Benefits are taxed but not paid in cash, so they are not part of net pay.
How PAYE is calculated in Kenya
- Start with gross pay: basic salary plus taxable allowances and benefits.
- Work out the statutory deductions: NSSF (6% of pay up to KES 108,000, so at most KES 6,480), SHIF (2.75% of gross, at least KES 300) and the Affordable Housing Levy (1.5% of gross).
- Find taxable pay: since 27 December 2024 (Tax Laws (Amendment) Act, 2024), NSSF, SHIF and the Housing Levy are deducted before tax, together with any registered pension, post-retirement medical fund or mortgage interest within the caps.
- Apply the monthly tax bands below to taxable pay.
- Subtract reliefs: personal relief of KES 2,400 a month, plus insurance relief if you have qualifying premiums. What remains is PAYE.
Monthly PAYE tax bands (2026)
| Monthly taxable pay (KES) | Rate |
|---|---|
| First 24,000 | 10% |
| Next 8,333 (24,001 to 32,333) | 25% |
| Next 467,667 (32,334 to 500,000) | 30% |
| Next 300,000 (500,001 to 800,000) | 32.5% |
| Above 800,000 | 35% |
The Finance Act, 2026 (assented 23 June 2026) did not change the PAYE bands or the personal relief of KES 2,400 a month.
Worked example: KES 120,000 a month
NSSF KES 6,480, SHIF KES 3,300 and Housing Levy KES 1,800 come off first, leaving taxable pay of KES 108,420. Tax on the bands is KES 27,309.35. After personal relief of KES 2,400, PAYE is KES 24,909.35, and net pay is about KES 83,511 before any loans or other deductions.
What your employer pays on top
Your employer matches your NSSF contribution (up to KES 6,480) and pays a matching 1.5% Housing Levy. SHIF is paid by the employee only. PAYE, NSSF and SHIF are due by the 9th of the following month. The Housing Levy is due within nine working days after the end of the month.
Related reading: Individual income tax returns in Kenya · Statutory payroll deductions in Kenya · Tax calendar in Kenya 2026 · All tax insights
Let us file your annual tax return
PAYE deducted by your employer does not replace your annual return. Every individual with a KRA PIN must file one each year, even if all your tax has already been paid through payroll.
Employment income only
You earn a salary and your employer deducts PAYE.
- We check your P9 form against iTax
- We claim the reliefs you are entitled to, such as insurance, pension and mortgage interest
- We file your return on time and send you the acknowledgement
Employment plus other income
You also earn consultancy, business, rental, investment or foreign income.
- We work out the tax on each source and claim the PAYE and withholding tax already paid
- We apply allowable expenses so you do not overpay
- We file one complete return and tell you if any balance is due before the deadline
A fixed fee agreed before we start. Ask us for a quote.
Frequently asked questions
Is SHIF deducted before PAYE?
Yes. Since 27 December 2024, SHIF contributions are deducted from employment income before PAYE is calculated. Insurance relief no longer applies to SHIF.
Is the Housing Levy tax deductible?
Yes. The employee's 1.5% Affordable Housing Levy is deducted before PAYE. The employer's matching 1.5% is not part of your pay.
What are the NSSF rates in 2026?
From February 2026, employees and employers each pay 6% of pay. Tier I covers pay up to KES 9,000 (KES 540). Tier II covers pay from KES 9,001 to KES 108,000 (up to KES 5,940). The most each side pays is KES 6,480 a month.
Who pays no PAYE?
With current rates, someone earning about KES 24,000 or less in taxable pay pays no PAYE, because the tax on that amount is covered by the personal relief of KES 2,400.
When is the deadline for filing individual tax returns in Kenya?
From 2027, individuals must file by 30 April, following the Finance Act 2026. Returns for 2026 income are due by 30 April 2027. Late filing costs KES 2,000 or 5% of the tax due, whichever is higher.
Does this calculator work for consultants and casual workers?
No. Consultants and many casual payments are subject to withholding tax rather than PAYE. Talk to us if you are unsure how a payment should be taxed.
Let us run your payroll
Monthly payroll, payslips and KRA, NSSF, SHIF and Housing Levy filings, done on time.
Disclaimer: This calculator gives an estimate for general information only, using rates in force on 11 October 2026. It is not tax, legal or payroll advice, and FNJ & Associates accepts no liability for decisions made using it. Check your figures against KRA guidance or speak to us before relying on them.