Africa Tax Updates 2026: Nigeria, Kenya and South Africa

Tax rules across Africa do not change on one shared calendar. A reliable update therefore needs a defined country, tax period, effective date, and primary source. This guide focuses on three high-intent 2026 changes that can be checked directly against official material: Nigeria personal income tax, Kenya payroll deductions, and South Africa individual tax and VAT thresholds.

The September 2026 review found material errors in the earlier version of this page. Its Nigeria personal income tax table used the wrong upper bands, and its Kenya NSSF section used an obsolete ceiling and an incorrect 3% plus 3% split. Those figures have been removed and replaced with the enacted Nigeria Tax Act schedule and Kenya NSSF Year 4 notice.

The 2026 changes worth checking first

• Nigeria: the Nigeria Tax Act 2025 applies from January 1, 2026 and replaces the old individual rate schedule with bands from 0% to 25%.
• Kenya: PAYE bands remain in the KRA table, while NSSF moved to Year 4 limits from February 2026. SHIF and the Affordable Housing Levy remain separate payroll lines.
• South Africa: the 2026/27 individual table applies from March 1, 2026. SARS also administers higher compulsory and voluntary VAT registration thresholds from April 1, 2026.

Nigeria personal income tax from January 2026

The Nigeria Tax Act 2025 published by the National Assembly commenced on January 1, 2026. Federal transition guidance says liabilities for periods before that date remain under the repealed rules, while the new framework applies from its enacted commencement date. That date boundary matters when a return, payroll correction, or assessment spans 2025 and 2026.

Enacted individual rate schedule

The Fourth Schedule applies the following rates after eligible deductions and exemptions. These are bands of chargeable income, not rates applied to the whole income once a threshold is crossed.

Eligible deductions and rent relief

Section 30 lists eligible deductions including qualifying National Housing Fund, National Health Insurance Scheme and pension contributions, eligible owner-occupied home-loan interest, qualifying life insurance or annuity payments, and rent relief. Rent relief is 20% of annual rent actually paid, capped at NGN 500,000, subject to accurate declaration and any evidence required by the relevant tax authority.

Do not treat the first NGN 800,000 as a general cash allowance. It is the 0% band applied to chargeable income after the relevant deductions. Claims such as rent relief may require records, and section 32 permits the authority to ask for documentary evidence.

Use the AfroTools Nigeria PAYE calculator for a planning estimate under the 2026 bands. Choose the 2026 regime, check the assumptions shown by the tool, and use the official tax authority for filing or an assessment.

Kenya payroll deductions in 2026

Kenya payroll combines several distinct obligations. PAYE uses the KRA income tax bands. NSSF is a pension contribution with Year 4 limits from February 2026. SHIF is a health contribution, and the Affordable Housing Levy is another payroll line. Combining them into one percentage hides which rule and remittance date applies.

PAYE Bands

The KRA PAYE page lists five monthly bands and a KES 2,400 monthly personal relief:

The personal relief remains at KES 2,400 per month (KES 28,800 per year), unchanged from previous years.

NSSF Year 4 from February 2026

The official NSSF Year 4 notice says the new limits apply from February 2026. The employee contributes 6% and the employer matches 6%. The lower earnings limit is KES 9,000 and the upper earnings limit is KES 108,000.

The old KES 200 flat amount, a KES 36,000 ceiling, or a 3% plus 3% split are not the Year 4 rules. Employers should also note that the NSSF notice gives the ninth day of the following month as the remittance deadline.

SHIF and Affordable Housing Levy

Kenya’s Social Health Insurance Regulations set the salaried household contribution at 2.75% of gross salary or wages, with a minimum of KES 300 per month. The Kenya Law text is the primary legal reference for the contribution rule.

KRA’s Affordable Housing Levy notice states that the employee pays 1.5% of gross monthly salary and the employer contributes another 1.5%. Keep the employee deduction and employer cost separate in payroll records.

Use the AfroTools Kenya PAYE calculator to estimate the five PAYE bands, NSSF Year 4, SHIF, and the housing levy. Review the displayed assumptions before comparing the result with a payslip or KRA record.

South Africa 2026/27 SARS Tax Year

South Africa’s current individual tax year runs from 1 March 2026 to 28 February 2027. SARS Budget 2026 guidance updates the individual brackets, rebates, tax thresholds, medical credits, transfer duty bands, VAT registration thresholds, and tax-free savings contribution limit for the year.

Tax Bracket Adjustments

The seven personal income tax brackets still run from 18% in the first band to 45% in the top band, but the 2026/27 SARS table starts at R1 to R245,100 and reaches the top band above R1,878,600. That means older 2025/26 tables should no longer be used for March 2026 payroll onward.

Rebates and Thresholds

The primary rebate is R17,820 for 2026/27. SARS lists the tax threshold at R99,000 for taxpayers below age 65, R153,250 for age 65 to below 75, and R171,300 for age 75 and above. The secondary rebate is R9,765 and the tertiary rebate is R3,249.

Medical Tax Credits

Medical scheme contribution tax credits were updated in the SARS 2026 guide. The first two people covered receive R376 per month each, with additional dependants receiving R254 per month each. These credits directly reduce tax payable rather than taxable income.

UIF Contributions

Unemployment Insurance Fund (UIF) contributions remain at 1% of remuneration from the employee, matched by 1% from the employer. The contribution ceiling is capped at R17,712 per month (R212,539.20 annually), meaning maximum UIF deduction is R177.12 per month.

VAT Rate And Registration Thresholds

The planned 2025 VAT increase did not become the live operating rate. National Treasury stated in April 2025 that legislation would maintain VAT at 15% from 1 May 2025, and SARS Budget 2026 guidance still lists VAT at the standard rate of 15%. For 2026/27, SARS also lists compulsory VAT registration above R2.3 million in taxable supplies per year and voluntary registration above R120,000 up to R2.3 million.

The current AfroTools South Africa calculator is explicitly labelled for 2025/26, so it should not be used to calculate 2026/27 payroll. Use the SARS 2027 employer guide or an updated payroll system for the March 2026 to February 2027 tax year.

What this guide does not claim

This page is not a complete table for all 54 African countries. It no longer republishes unsourced payroll, pension, digital tax, or corporate tax figures for countries that were not reverified in this run. A country not listed here may still have important 2026 changes. It means only that this bounded refresh did not establish the required primary-source evidence for that country.

Do not carry a percentage from one country into another, assume that a budget announcement is already enacted, or treat a social contribution as an income tax. Check the authority, legal instrument, effective date, taxpayer type, earnings definition, cap, and remittance deadline separately.

VAT changes included in this review

Only South Africa VAT is included in this refresh because the current SARS material gives a clear operating position. The standard rate remains 15%. From April 1, 2026, compulsory registration applies above R2.3 million of taxable supplies in a consecutive 12-month period, while voluntary registration is available above R120,000 subject to the stated conditions and exceptions.

Those are registration thresholds, not a tax-free allowance on sales. A business below the compulsory threshold may still have a voluntary registration, sector-specific rule, historical liability, or deregistration process to resolve. Use the SARS registration page for the current administrative requirements.

Primary-source ledger for this update

A safer payroll and tax review checklist

1. Identify the period. Nigeria changed on January 1, Kenya NSSF Year 4 changed in February, South Africa individual tax changed on March 1, and South Africa VAT thresholds changed on April 1.
2. Separate tax from contributions. PAYE, NSSF, SHIF, housing levy, UIF, and VAT follow different bases and administration rules.
3. Check the earnings definition. Gross salary, chargeable income, pensionable earnings, and taxable supplies are not interchangeable.
4. Check both sides of payroll. Some contributions have an employee deduction and a separate employer match.
5. Keep evidence. Reliefs and deductions can depend on declarations, receipts, contracts, or other records.
6. Use the authority for filing. An AfroTools result can help review a calculation, but it does not submit a return or override an assessment.

Use a calculator only for its stated tax period

Start with the PAYE calculator country directory, then open the country-specific route and read its tax-year and source note. The Nigeria tool supports the 2026 Nigeria Tax Act bands, and the Kenya tool includes NSSF Year 4. The South Africa tool is still labelled 2025/26, so use the current SARS employer guide for a 2026/27 calculation.

A calculator result is a planning estimate. It does not establish residence, decide whether income is taxable, prove a deduction, submit a return, or replace payroll and authority records. If the source date or tax period does not match the period you need, stop and verify before using the number.