Last updated: March 2026 · Finance Act 2024 (Kenya) · Finance Act 2025/26 (Tanzania)
Side-by-Side Comparison
| Category | 🇰🇪 Kenya | 🇹🇿 Tanzania |
|---|---|---|
| Tax Authority | KRA | TRA |
| Currency | KES (KSh) | TZS (TSh) |
| PAYE Bands | 5 bands (10%–35%) | 5 bands (0%–30%) |
| Top Marginal Rate | 35% | 30% LOWER |
| Entry Rate | 10% (first KES 24,000) | 0% (first TZS 270,000) |
| Pension (Employee) | NSSF Tier I+II (capped ~KES 2,160) | NSSF 10% (uncapped) |
| Health Contribution | SHIF 2.75% of gross | WCF (employer only) |
| Housing Levy | AHL 1.5% (employee + employer) | None LOWER |
| Skills Levy | None | SDL 4% (employer only) |
| Personal Relief | KES 2,400/month | None |
| Swahili Calculator | ✅ Available | ✅ Available |
PAYE Band Comparison
🇰🇪 Kenya KRA Bands (Monthly)
| Monthly (KES) | Rate |
|---|---|
| 0 – 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| 32,334 – 500,000 | 30% |
| 500,001 – 800,000 | 32.5% |
| Above 800,000 | 35% |
🇹🇿 Tanzania TRA Bands (Monthly)
| Monthly (TZS) | Rate |
|---|---|
| 0 – 270,000 | 0% ✅ |
| 270,001 – 520,000 | 8% |
| 520,001 – 760,000 | 20% |
| 760,001 – 1,000,000 | 25% |
| Above 1,000,000 | 30% |
Take-Home Examples
🇰🇪 Kenya — KES 80,000/mo
NSSF: ~KES 2,160
SHIF (2.75%): ~KES 2,200
AHL (1.5%): ~KES 1,200
Personal relief: −KES 2,400
🇹🇿 Tanzania — TZS 1,500,000/mo
NSSF (10%): ~TZS 150,000
No AHL, no SHIF employee cost
Analysis
Kenya's Unique Deductions: SHIF + AHL
Kenya's Finance Act 2023 introduced two mandatory deductions that Tanzania does not have: the Social Health Insurance Fund (SHIF) at 2.75% of gross salary with no cap, and the Affordable Housing Levy (AHL) at 1.5% of gross (matched by employer). Together these add 4.25% of gross to Kenya's employee deduction burden.
Tanzania's Uncapped NSSF
Tanzania's NSSF contribution of 10% (employee) + 10% (employer) has no monthly cap. This means a Tanzanian earning TZS 5M/month pays TZS 500,000 in NSSF contributions, while a Kenyan at the equivalent salary pays only ~KES 2,160 in NSSF. For high earners, Tanzania's NSSF is more burdensome.
SDL is Employer-Only in Tanzania
Tanzania's Skills Development Levy (SDL) at 4% of payroll is paid entirely by the employer — employees do not see it as a deduction from their salary. Kenya has no equivalent employer skills levy, though Kenya's employer-side AHL and NSSF Tier II add to employer costs in different ways.
Personal Relief: Kenya's Advantage
Kenya's personal relief of KES 2,400/month (KES 28,800/year) directly reduces PAYE payable. Tanzania has no equivalent personal relief credit. This makes Kenya's actual effective rates lower than the headline bands suggest, particularly for lower-to-middle earners.
Frequently Asked Questions
Does Kenya or Tanzania have higher PAYE rates?
Kenya's top rate (35%) is higher than Tanzania's (30%). But Kenya has more deductions (SHIF, AHL) while Tanzania has a true 0% band for the first TZS 270,000.
How does NSSF differ between Kenya and Tanzania?
Tanzania's NSSF is uncapped at 10%+10%, while Kenya's NSSF 2023 caps the employee contribution at approximately KES 2,160/month. For high earners, Tanzania's NSSF deducts far more.
Is there a Swahili version of this comparison?
Yes! Read Kenya vs Tanzania Kodi 2026 in Kiswahili. AfroTools also has dedicated Swahili PAYE calculators for Kenya and Tanzania.
Which country is easier for employers?
Both countries have similar employer compliance complexity. Kenya's AHL and SHIF add administrative burden on the employer side. Tanzania's SDL at 4% is a larger employer cost but has a simpler calculation than Kenya's multi-levy structure.
Do both countries use the same fiscal year?
Both Kenya and Tanzania use January–December fiscal years for individual income tax, making comparison straightforward. Both file annual returns through their respective revenue authority portals (KRA iTax and TRA EFDMS).