How PAYE is calculated in Kenya: bands, relief and a worked example

The 2026 PAYE bands

These are the rates on the Kenya Revenue Authority's PAYE page. They have not changed since July 2023.

Worked example: KES 100,000 a month

1. NSSF: 6% of pay up to KES 108,000 = KES 6,000.
2. SHIF: 2.75% of gross = KES 2,750.
3. Housing Levy: 1.5% of gross = KES 1,500.
4. Taxable pay: 100,000 − 6,000 − 2,750 − 1,500 = KES 89,750.
5. Tax by band: 24,000 × 10% = 2,400; 8,333 × 25% = 2,083; the rest (57,417) × 30% = 17,225. Total KES 21,708.
6. Less personal relief: − 2,400 = PAYE KES 19,308.
7. Take-home: KES 70,442.

Reliefs and deductions that lower PAYE

• Personal relief: KES 2,400 a month for every resident employee.
• Pension contributions: up to KES 30,000 a month, including NSSF, come off taxable pay. See our guide to pension tax relief.
• Mortgage interest: up to KES 30,000 a month on a loan for your own home.
• Post-retirement medical fund: up to KES 15,000 a month.

Since 27 December 2024, SHIF and Housing Levy contributions are deducted in full before tax. They replaced the old 15% insurance and housing reliefs.

Common PAYE mistakes

• Applying 30% to your whole salary. Only the slice above KES 32,333 of taxable pay is taxed at 30%.
• Forgetting that non-residents don't get personal relief.
• Counting your employer's NSSF or Housing Levy as your deduction. Employers pay a matching amount on top.

Allowances and benefits are taxable too

PAYE is charged on your total taxable pay, not just basic salary. House, transport and commuter allowances are all taxable. Benefits in kind such as a company car, or a low-interest loan from your employer, may be taxed at a set value. Some items are tax-free within limits, such as per diems for genuine work travel.

Two jobs, one tax

If you have a second job, the second employer usually deducts PAYE at a flat high rate without the lower bands or personal relief, because relief is only given once. When you file your return, the tax from both jobs is reconciled. This is one reason people with side jobs sometimes owe tax at the end of the year.

PAYE in Kenya: a short timeline

Check your marginal rate

Your marginal rate is the tax on your next shilling. It matters more than your average rate when you think about overtime, raises or pension savings. The salary calculator shows yours, and the salary growth simulator shows how it changes as your pay rises.

Frequently asked questions

Last reviewed 1 Oct 2026. METRIKA gives estimates and general information, not financial, tax, legal or immigration advice.