If you earn a salary in Kenya, your take-home pay depends on more than the PAYE tax bands. A 2026 payslip usually includes PAYE, NSSF, SHIF, the Affordable Housing Levy, personal relief, and any employer-specific deductions. The hard part is not the tax table alone. The hard part is using the current statutory deductions in the right order.
Primary sources reviewed on June 17, 2026. This guide uses KRA PAYE guidance, the official NSSF Year 4 notice, NSSF's June 2026 clarification, KRA's Affordable Housing Levy notice, and the Social Health Insurance Regulations. Use the Kenya PAYE Calculator when you want the instant number.
Kenya Salary Tax Snapshot for 2026
| Item | Current 2026 position |
|---|---|
| PAYE bands | 10%, 25%, 30%, 32.5%, and 35% on monthly taxable employment income. |
| Personal relief | KES 2,400 per month for resident individuals. |
| NSSF | Year 4 from February 2026: employee maximum KES 6,480, with employer match. |
| SHIF | 2.75% of gross salary or wage for salaried households, minimum KES 300. |
| Affordable Housing Levy | 1.5% of gross monthly salary from employee plus 1.5% employer contribution. |
| PAYE filing and payment by employer | By the 9th day of the following month. |
Kenya PAYE Tax Bands
KRA says employers apply the individual income tax bands introduced under the Finance Act 2023. These bands apply to taxable employment income after allowable deductions.
| Monthly taxable income | Rate | Annual equivalent |
|---|---|---|
| First KES 24,000 | 10% | First KES 288,000 |
| Next KES 8,333 | 25% | Next KES 100,000 |
| Next KES 467,667 | 30% | Next KES 5,612,000 |
| Next KES 300,000 | 32.5% | Next KES 3,600,000 |
| Above KES 800,000 | 35% | Above KES 9,600,000 |
There is no zero-rate band. The first KES 24,000 is taxed at 10%, then personal relief usually offsets that first KES 2,400 of tax for resident taxpayers.
Deductions Before PAYE
KRA lists several amounts that are deducted from employment income before the PAYE bands are applied. For a normal 2026 salary calculation, the most visible ones are AHL, SHIF, and NSSF or other registered pension contributions.
SHIF
For salaried households, the Social Health Insurance Regulations set SHIF at 2.75% of gross salary or wage, with a minimum monthly contribution of KES 300. KRA's PAYE page lists SHIF contributions among allowable deductions when determining taxable employment income.
Affordable Housing Levy
The employee Affordable Housing Levy is 1.5% of gross monthly salary. The employer pays a matching 1.5% separately. KRA's PAYE page lists the amount deducted as AHL among allowable deductions for taxable employment income, and KRA's AHL notice says remittance is due by the ninth working day after month-end.
NSSF Year 4
NSSF Year 4 took effect in February 2026. The official NSSF notice lists a KES 9,000 lower earnings limit and a KES 108,000 upper earnings limit. The employee contributes 6% and the employer matches 6%.
| NSSF tier | 2026 band | Employee maximum |
|---|---|---|
| Tier I | Up to KES 9,000 | KES 540 |
| Tier II | Above KES 9,000 up to KES 108,000 | KES 5,940 |
| Total | Up to KES 108,000 | KES 6,480 |
NSSF also published a June 4, 2026 clarification saying the NSSF Act remains in force and Year 4 contributions remain in effect. That is why payroll files should not revert to the old KES 200 figure or the earlier KES 2,160 maximum.
Worked Example: KES 150,000 Monthly Salary
This example assumes a KES 150,000 gross monthly salary, no private insurance relief, no mortgage-interest deduction, and no voluntary pension contribution beyond NSSF. It is a planning estimate, not an official payslip.
Step 1: Allowable Deductions Before PAYE Bands
| Deduction | Calculation | Amount |
|---|---|---|
| NSSF Tier I | 6% x KES 9,000 | KES 540 |
| NSSF Tier II | Maximum Year 4 Tier II | KES 5,940 |
| SHIF | 2.75% x KES 150,000 | KES 4,125 |
| AHL | 1.5% x KES 150,000 | KES 2,250 |
| Total deductions before PAYE bands | KES 12,855 |
Taxable employment income is KES 150,000 minus KES 12,855, which equals KES 137,145.
Step 2: Apply PAYE Bands
| Band | Income in band | Rate | Tax |
|---|---|---|---|
| First band | KES 24,000 | 10% | KES 2,400 |
| Second band | KES 8,333 | 25% | KES 2,083 |
| Third band | KES 104,812 | 30% | KES 31,444 |
| Tax before relief | KES 35,927 | ||
After monthly personal relief of KES 2,400, PAYE is about KES 33,527.
Step 3: Estimate Net Pay
| Item | Amount |
|---|---|
| Gross salary | KES 150,000 |
| Less PAYE | (KES 33,527) |
| Less NSSF | (KES 6,480) |
| Less SHIF | (KES 4,125) |
| Less AHL | (KES 2,250) |
| Estimated take-home pay | KES 103,618 |
The employer also budgets an NSSF match of KES 6,480 and an AHL match of KES 2,250, on top of the KES 150,000 gross salary. Those employer-side amounts do not reduce the employee's gross salary, but they affect the total cost of employment.
Common Payslip Mistakes To Check
Using old NSSF caps. If a 2026 payslip still caps employee NSSF at KES 2,160 or shows only KES 200, it is not using the official Year 4 notice.
Leaving SHIF or AHL outside taxable-income deductions. KRA's PAYE page lists both SHIF and AHL in the allowable-deduction section. Older payroll explainers may not reflect this.
Forgetting personal relief. Resident individual taxpayers should normally see KES 2,400 personal relief reduce calculated PAYE.
Mixing employer cost with employee deductions. Employer NSSF and employer AHL are real payroll costs, but they are not deducted from employee net pay.
Freelancers, Side Income, And PAYE
PAYE is an employer-withholding system for employment income. Freelancers, consultants, and sole proprietors normally calculate and file annual income tax through iTax instead of having PAYE withheld by an employer.
If you are employed and also earn freelance, rental, farming, or consulting income, the salary PAYE does not automatically close your annual tax position. KRA's current filing guidance for 2025 returns tells taxpayers with additional income to declare both employment income and additional income in the annual return.
Sources Reviewed
Primary sources reviewed on June 17, 2026:
- KRA PAYE guidance
- NSSF notice to employers, Year 4 contribution rates 2026
- NSSF clarification on the status of contributions
- KRA Affordable Housing Levy collection notice
- Kenya Law, Social Health Insurance Regulations 2024
- KRA guide to filing 2025 income tax returns
Calculate Your Kenya Take-Home Pay
Enter your salary and see PAYE, SHIF, NSSF, AHL, and estimated net pay with the current deduction stack.
Kenya PAYE Calculator →Frequently Asked Questions
Kenya does not have a zero-rate PAYE band. The first KES 24,000 of monthly taxable income is taxed at 10%, but monthly personal relief of KES 2,400 usually offsets that first-band tax for resident individuals.
For salaried households, SHIF is calculated at 2.75% of gross salary or wage, with a minimum monthly contribution of KES 300. KRA lists SHIF as an allowable deduction in determining taxable employment income.
From February 2026, the maximum employee NSSF contribution is KES 6,480 per month. That is KES 540 for Tier I plus KES 5,940 for Tier II. The employer pays the same amount separately.
Freelancers and self-employed people normally do not pay PAYE through an employer. They file annual income tax returns and account for their business or professional income through iTax.
KRA lists AHL among allowable deductions in determining taxable employment income. The employee rate is 1.5% of gross monthly salary, with a matching 1.5% employer contribution.