🇰🇪

Kenya
Tools 2026

Tax calculators, PDF workspace, currency tools, education calculators and more — all built for Kenya. Tax tools updated for Finance Act 2025.

Finance Act 2025 KRA compliant Loading… Free forever
About Kenya

Kenya Tax & Finance Overview

Kenya's tax system is administered by the Kenya Revenue Authority (KRA) and ranks among the most structured in East Africa. Personal income tax in Kenya follows a progressive Pay-As-You-Earn (PAYE) framework with rates spanning from 10% to 35% across five income bands, all denominated in the Kenyan Shilling (KES). Beyond PAYE, Kenyan employees face several mandatory statutory deductions that significantly affect take-home pay. The National Social Security Fund (NSSF) requires a tiered employee contribution of up to KSh 2,160 per month under the new rates, while the Social Health Insurance Fund (SHIF) — which replaced the National Hospital Insurance Fund (NHIF) — levies 2.75% of gross salary. The Affordable Housing Levy (AHL) adds a further 1.5% employee contribution matched by employers. As of 2025, both SHIF and AHL are treated as pre-tax deductions, reducing taxable income before PAYE is calculated, though the corresponding tax reliefs for these contributions were repealed in December 2024 under the Tax Laws Amendment Act. Kenya also applies a standard VAT rate of 16% on most goods and services with certain exemptions for essential items. Personal relief of KSh 2,400 per month, insurance relief capped at KSh 5,000 per month, and pension deductions up to KSh 20,000 per month help reduce the overall tax burden. AfroTools offers free, KRA-compliant PAYE calculators, NSSF and SHIF contribution tools, AHL calculators, and comprehensive net salary breakdown tools for Kenya. All tools are updated for the 2025/2026 tax year and reflect the latest Finance Act provisions.

2025 amendments now in effect. SHIF (2.75%) and Affordable Housing Levy (1.5%) are now pre-tax deductions — subtracted from gross salary before PAYE is calculated. SHIF relief (15%) and AHL tax relief were repealed by the Tax Laws Amendment Act 2024, effective December 2024.

Tools

All Kenya Tools

Tax calculators, document tools, and more — built specifically for Kenya or available across all 54 African countries.

Reference

Quick Reference — 2026 Rates

Official KRA tax tables, NSSF, SHIF, and AHL rates for the 2025/2026 period.

PAYE Bands
NSSF
SHIF
Housing Levy
Monthly Taxable Income (KSh)Annual EquivalentRate
Up to KSh 24,000Up to KSh 288,000/yr10%
KSh 24,001 – 32,333KSh 288,001 – 388,000/yr25%
KSh 32,334 – 500,000KSh 388,001 – 6,000,000/yr30%
KSh 500,001 – 800,000KSh 6,000,001 – 9,600,000/yr32.5%
Above KSh 800,000Above KSh 9,600,000/yr35%
ComponentDetailsRate / Cap
Tier I (Lower earnings)Up to KSh 7,0006% each
Tier II (Upper earnings)KSh 7,001 – KSh 36,0006% each
Max employee contributionTier I + Tier IIKSh 2,160/mo
Max total (ee + er)Both tiers, both partiesKSh 4,320/mo
ComponentDetailsRate
SHIF contributionOn gross monthly salary2.75%
Minimum contributionRegardless of salaryKSh 300/mo
Tax treatment (2026)Pre-tax deductionDeductible
SHIF relief (15%)Repealed Dec 2024Repealed
ComponentDetailsRate
Employee contributionOn gross salary1.5%
Employer contributionMatched1.5%
Tax treatment (2026)Pre-tax deductionDeductible
AHL tax reliefRepealed Dec 2024Repealed
What Changed

Key 2025/2026 Changes

Major changes from the Tax Laws Amendment Act 2024 and Finance Act 2025.

📋 For Employees

  • SHIF and AHL are now pre-tax deductions
  • SHIF relief (15%) and AHL relief — both repealed Dec 2024
  • Personal relief remains KSh 2,400/month
  • Insurance relief: 15% of premiums, max KSh 5,000/month
  • Pension deductible up to KSh 20,000/month
  • Mortgage interest relief up to KSh 25,000/month

🏢 For Employers

  • NSSF employer match: up to KSh 2,160/month
  • AHL employer match: 1.5% of gross salary
  • PAYE remittance: 9th of following month
  • eTIMS mandatory for VAT-registered businesses
  • Late PAYE: KSh 10,000 or 5% of tax due
  • KRA auto-audit on eTIMS discrepancies

⚠️ Compliance Deadlines

  • PAYE remittance: 9th of following month
  • NSSF/SHIF/AHL: 9th of following month
  • Annual tax returns: 30 June
  • Late filing: KSh 10,000 or 5% of tax
  • VAT returns: 20th of following month
  • eTIMS reporting: real-time

📚 Legal Sources

  • Income Tax Act, Cap 470
  • Finance Act 2025
  • Tax Laws (Amendment) Act 2024
  • Social Health Insurance Act, 2023
  • NSSF Act, 2013
  • Affordable Housing Act, 2024