What PAYE bands does the calculator use?

The calculator uses the KRA individual income tax bands effective from 1 July 2023: 10%, 25%, 30%, 32.5%, and 35%, together with personal relief where applicable.

Does the calculator include SHIF and Housing Levy?

Yes. It includes the deductions used in Kenyan payroll calculations, including SHIF and Housing Levy, so the net salary estimate reflects the current payroll workflow.

2026 Statutory Rates Active

PAYE Calculator Kenya 2026

Estimate your exact net salary with progressive PAYE tax bands, NSSF Tier limits, SHIF, Housing Levy, and applicable reliefs.

Enter Salary Parameters

Gross Monthly Salary (KES)

KES

Enter your total monthly gross earnings (basic salary + cash allowances/taxable benefits) before statutory deductions.

Resident Individual Monthly personal relief of KES 2,400 applies automatically to resident workers.

Statutory Period

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

Insurance Premium (for relief)

15% relief up to KES 5,000 monthly (KES 60,000 annually).

Voluntary Pension Contribution (monthly KES)

Combined with NSSF, tax-deductible up to KES 30,000 or 30% of gross salary.

Mortgage Interest (monthly KES)

Tax-deductible interest up to KES 30,000.

Post-retirement Medical Fund (monthly KES)

Tax-deductible contribution up to KES 15,000 per month.

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Salary Breakdown

Estimated Take-Home Salary

KES 0

0% of Gross Earnings

Deductions Visual Ratio

Net Pay PAYE NSSF SHIF Housing

Item	Amount
Gross Salary	KES 0
NSSF Contribution	- KES 0
SHIF Contribution	- KES 0
Housing Levy	- KES 0
Post-retirement Medical Fund (tax deduction)
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

Key Tax Changes in Kenya (2026)

NSSF Phase 4

Effective Feb 2026, NSSF increases to 6% of earnings up to KES 108,000 (Max KES 6,480).

SHIF & Housing

SHIF (2.75%) and Housing Levy (1.5%) are both fully tax-deductible, reducing your PAYE.

PAYE Bands

The KRA progressive PAYE bands continue to apply in 2026, including the 35% band above KES 800,000 of monthly taxable income.

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.

NSSF Phase 4 Rates (2026)

Tier I limit 6% up to KES 9,000

Tier II limit 6% up to KES 108,000

Max monthly NSSF KES 6,480

Understanding Your Payslip in 2026

Everything you need to know about Kenyan statutory deductions and net pay calculations.

SHIF Explained

The Social Health Insurance Fund (SHIF) replaces NHIF at a rate of 2.75% of your gross salary. Unlike the old system, this mandatory contribution ensures equity in national healthcare funding.

Housing Levy

A mandatory 1.5% contribution towards the Affordable Housing Program. This levy is deducted from your gross pay and matched by your employer to fund housing projects.

NSSF Tiers

Pension contributions follow a Tiered system. 2026 rates set the Lower Limit to KES 9,000 and Upper Limit to KES 108,000 for maximum savings.

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About the Statum Kenya PAYE Calculator

Navigating Kenyan tax laws can be complex. Whether you're an employer planning payroll or an employee verifying your net salary, accuracy matters. This calculator applies the 2026 statutory formulas used by KRA - including progressive PAYE bands, NSSF Phase 4 tiers, SHIF at 2.75%, and the Affordable Housing Levy at 1.5%.

We reflect the current Finance Act provisions, so every shilling deducted for PAYE, SHIF, and the Affordable Housing Levy is accounted for. Both SHIF and Housing Levy became tax-deductible in late 2024, meaning they reduce your taxable income before PAYE is applied.

The calculator works as a Progressive Web App (PWA) - you can install it on your phone and calculate salaries even when offline. Interactive calculations happen locally in your browser; PDF downloads require a deliberate server request.

Frequently Asked Questions

PAYE (Pay As You Earn) is calculated using progressive tax bands on your taxable income. The first KES 24,000 is taxed at 10%, KES 24,001-32,333 at 25%, KES 32,334-500,000 at 30%, KES 500,001-800,000 at 32.5%, and above KES 800,000 at 35%. A personal relief of KES 2,400 is then deducted from the gross PAYE to get your net PAYE. NSSF, SHIF, and Housing Levy are deducted from your gross salary first to arrive at your taxable income.

From February 2026, NSSF follows Year 4: 6% of pensionable earnings up to KES 108,000 (Tier I on the first KES 9,000 = KES 540, Tier II on the next KES 99,000 = up to KES 5,940). The maximum employee contribution is KES 6,480 per month; the employer contributes an equal amount separately.

SHIF (Social Health Insurance Fund) replaced NHIF in October 2024. It is 2.75% of your gross salary with a minimum deduction of KES 300 and no upper cap. Unlike NHIF, SHIF is fully tax-deductible - meaning it reduces your taxable income before PAYE is applied, saving you additional tax.

The Affordable Housing Levy (AHL) is 1.5% of your gross salary with no cap. Both you and your employer contribute 1.5% each. Effective December 2024, the levy is fully tax-deductible, reducing your taxable income before PAYE calculation.

No. The Affordable Housing Levy is a non-refundable mandatory contribution deducted from your gross salary to fund Kenya's national housing development programme. You cannot claim it back, but you will benefit from the levy through access to affordable housing units over time.

Resident individuals may claim 15% of qualifying insurance premiums as a reduction against PAYE. The maximum is KES 5,000 per month (KES 60,000/year). Enter your monthly premium in the calculator to see the capped estimate.

Every resident employee in Kenya receives a personal relief of KES 2,400 per month (KES 28,800 per year). This is automatically deducted from your gross PAYE to arrive at your net PAYE payable. You do not need to apply for it - your employer applies it through payroll.

Taxable income starts with gross salary and subtracts applicable NSSF, SHIF, Housing Levy, pension, mortgage-interest and post-retirement medical fund deductions within their statutory limits. PAYE tax bands are then applied to the remaining amount.

NHIF (National Hospital Insurance Fund) was replaced by SHIF (Social Health Insurance Fund) in October 2024. NHIF used fixed monthly amounts based on salary bands (e.g. KES 1,700 for those earning above KES 100,000). SHIF uses a flat percentage - 2.75% of gross salary with a minimum of KES 300. SHIF is also tax-deductible, while NHIF was not.