How is PAYE calculated in Kenya?

PAYE in Kenya is calculated using progressive tax bands: 10% for income up to KES 24,000, 25% for KES 24,001-32,333, 30% for KES 32,334-500,000, 32.5% for KES 500,001-800,000, and 35% above KES 800,000. A personal relief of KES 2,400 is then deducted.

What is the NSSF contribution rate in 2026?

From February 2026, NSSF contributions follow Phase 4 implementation: 6% of pensionable earnings up to KES 108,000, with a maximum employee contribution of KES 6,480 per month.

What is SHIF and how much is deducted?

SHIF (Social Health Insurance Fund) replaced NHIF in 2024. The contribution is 2.75% of your gross salary with a minimum of KES 300 and no maximum cap. SHIF contributions are tax-deductible.

What is the Housing Levy in Kenya?

The Affordable Housing Levy is 1.5% of your gross salary with no cap. Both employer and employee contribute 1.5% each. The contribution is tax-deductible.

PAYE Calculator Kenya 2026

Calculate your net salary with accurate NSSF, SHIF, Housing Levy, and PAYE deductions. Updated for NSSF Phase 4.

Enter Your Salary Details

Gross Monthly Salary (KES)

KES

Enter your monthly gross salary before any deductions

KES 0 KES 10,000,000

Statutory Period

NSSF Phase 4: From February 2026, NSSF contributions increase to 6% of earnings up to KES 108,000 (max KES 6,480/month).

Insurance Premium (for relief)

15% relief up to KES 15,000

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Your Salary Breakdown

Your Take-Home Pay

KES 0

0% of gross salary

Salary Breakdown

Net Pay PAYE NSSF SHIF Housing

Item	Amount
Gross Salary	KES 0
NSSF Contribution	- KES 0
SHIF Contribution	- KES 0
Housing Levy	- KES 0
Taxable Income	KES 0
Gross PAYE	KES 0
Personal Relief	- KES 2,400
Insurance Relief
Net PAYE	- KES 0
Net Salary	KES 0

Total Deductions

KES 0

Effective Tax Rate

PAYE as % of gross

How PAYE is Calculated in Kenya

Deduction Order

1
Gross Salary
Your total monthly earnings before any deductions
2
NSSF (6%)
Pension contribution deducted first
3
SHIF (2.75%)
Health insurance, min KES 300
4
Housing Levy (1.5%)
Affordable housing contribution
5
PAYE Tax
Progressive tax on taxable income, minus reliefs

PAYE Tax Bands (Monthly)

Income Band	Rate
KES 0 – 24,000	10%
KES 24,001 – 32,333	25%
KES 32,334 – 500,000	30%
KES 500,001 – 800,000	32.5%
Above KES 800,000	35%

Personal relief of KES 2,400 is deducted from gross PAYE.

Impact of NSSF Phase 4 (February 2026)

January 2026 (Current)

• Tier I: 6% up to KES 8,000
• Maximum contribution: KES 480

February 2026+ (Phase 4)

• Tier I: 6% up to KES 9,000
• Tier II: 6% up to KES 108,000 total
• Maximum contribution: KES 6,480