PAYE in Kenya 2026: How Your Salary Is Taxed (With Examples)

Every employed person in Kenya sees four statutory deductions on their payslip: NSSF, SHIF, the Affordable Housing Levy and PAYE. Since the Tax Laws (Amendment) Act 2024, the first three are taken off your gross pay before PAYE is worked out, which lowers your tax.

Step 1: the deductions that come first

NSSF: 6% of your pay up to KES 108,000 a month (rates from February 2026), so a maximum of KES 6,480.
SHIF: 2.75% of gross pay, minimum KES 300, no upper limit.
Housing Levy: 1.5% of gross pay.

Gross pay minus these three is your taxable pay.

Step 2: the PAYE bands

First KES 24,000: 10%
Next KES 8,333 (up to 32,333): 25%
Next KES 467,667 (up to 500,000): 30%
Next KES 300,000 (up to 800,000): 32.5%
Above KES 800,000: 35%

Step 3: personal relief

Every resident employee gets KES 2,400 a month of personal relief, subtracted from the tax. That is why the first KES 24,000 of taxable pay is effectively tax-free.

Worked examples

KES 50,000 a month: NSSF 3,000, SHIF 1,375, Housing Levy 750. Taxable pay 44,875. Tax 8,246, less relief 2,400 = PAYE 5,846. Take-home KES 39,029.

KES 100,000 a month: NSSF 6,000, SHIF 2,750, Housing Levy 1,500. Taxable pay 89,750. Tax 21,708, less relief = PAYE 19,308. Take-home KES 70,442.

KES 150,000 a month: NSSF 6,480 (the maximum), SHIF 4,125, Housing Levy 2,250. Taxable pay 137,145. Tax 35,927, less relief = PAYE 33,527. Take-home KES 103,618.

Check your own salary with our PAYE calculator.

Why your payslip might differ

Pension contributions to a registered scheme are deductible up to a limit.
Mortgage interest relief and other reliefs reduce tax further.
Allowances and benefits such as a company car are added to your gross pay.
People with a disability exemption certificate pay less.

PAYE in Kenya 2026: how your salary is taxed, step by step