How METRIKA calculates this
METRIKA applies Kenya's statutory deductions in the order KRA uses for payroll:
- NSSF at 6% of pensionable pay. Tier I covers the first KES 9,000 (max KES 540). Tier II covers pay from KES 9,001 to the upper earnings limit of KES 108,000 (max KES 5,940). The employee maximum is KES 6,480 a month from 1 February 2026.
- SHIF at 2.75% of gross pay with a KES 300 minimum and no upper cap.
- Affordable Housing Levy at 1.5% of gross pay.
- Taxable pay = gross − NSSF − SHIF − Housing Levy − allowable pension (combined pension cap KES 30,000 a month). NSSF, SHIF and the levy have been deductible before PAYE since the Tax Laws (Amendment) Act, 2024.
- PAYE monthly bands: 10% on the first KES 24,000; 25% on the next KES 8,333; 30% up to KES 500,000; 32.5% up to KES 800,000; 35% above. Personal relief of KES 2,400 is then subtracted.
The Finance Act, 2026 did not change the PAYE bands or personal relief.
What to know in Kenya
Most salaried Kenyans now pay four separate statutory deductions. The 2026 NSSF step-up raised the maximum employee contribution from KES 4,320 to KES 6,480, so anyone earning above KES 72,000 saw a smaller payslip in February 2026 even without a tax change. That extra NSSF is retirement savings in your name, and it lowers your taxable pay.
Not included: insurance relief (15% of qualifying premiums, max KES 5,000 a month), mortgage interest relief, disability exemptions, HELB and SACCO deductions, and taxable benefits such as car or housing benefits. If these apply to you, your payslip will differ.
Guides to each deduction: PAYE bands and relief, NSSF contributions, SHIF and the Housing Levy.
Frequently asked questions
Is SHIF deducted before PAYE?
Yes. Since December 2024, SHIF contributions reduce taxable pay before PAYE is calculated, as do NSSF and the Housing Levy.
What is the maximum NSSF deduction in 2026?
KES 6,480 a month for employees earning KES 108,000 or more, effective 1 February 2026. Your employer pays a matching amount.
At what salary do I start paying PAYE?
With the KES 2,400 personal relief, PAYE becomes positive once taxable pay passes KES 24,000. After NSSF, SHIF and the levy, that is a gross salary of roughly KES 27,000.
Why did my net pay drop in February 2026?
The NSSF upper earnings limit rose from KES 72,000 to KES 108,000, so contributions rose for anyone earning above KES 72,000.
Does this work for casual or contract workers?
It works for monthly employment income taxed through PAYE. Consultants paid with withholding tax are taxed differently.
How is PAYE calculated in Kenya in 2026?
Your employer subtracts NSSF, SHIF and the Housing Levy from gross pay to get taxable pay, then applies the monthly bands: 10% on the first KES 24,000, 25% on the next KES 8,333, 30% up to KES 500,000, 32.5% up to KES 800,000 and 35% above that. The KES 2,400 personal relief is then deducted from the tax.
How much tax do I pay on a KES 100,000 salary in Kenya?
On KES 100,000 gross a month, PAYE is about KES 19,308, NSSF KES 6,000, SHIF KES 2,750 and the Housing Levy KES 1,500. Take-home pay is about KES 70,442 a month.
What is the minimum wage in Kenya in 2026?
From 1 May 2026, the minimum monthly wage for a general labourer in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret is KES 18,047.40, about 12% higher than before. Rates differ by occupation and by town, and exclude housing allowance.
Do foreigners and expats pay income tax in Kenya?
Yes. Tax residents are taxed on their employment income worldwide, while non-residents are taxed only on income earned in or from Kenya. Both pay the same PAYE rates, but the KES 2,400 monthly personal relief is for residents.
When am I a tax resident in Kenya?
You are generally a Kenyan tax resident if you have a permanent home in Kenya and are present during the year, or if you spend 183 days or more in Kenya in a year, or an average of more than 122 days a year over that year and the two before it. Check your situation with KRA or a tax adviser.
My salary is paid in US dollars. How do I use this calculator?
PAYE bands in Kenya are set in shillings, so enter the Kenya shilling equivalent of your monthly gross pay. Your employer converts foreign-currency pay to shillings when running payroll.
Do foreign employees pay SHIF and the Housing Levy?
SHIF applies to people resident in Kenya, and the Housing Levy is charged on the gross pay of employees in Kenya, including foreign nationals on local payroll. If your contract is with a company abroad, ask a tax adviser how the rules apply to you.
How do I get a KRA PIN?
Register for free on the KRA iTax portal. Kenyans use their national ID. Foreigners need a passport and a Kenyan permit or visa; non-residents without Kenyan immigration documents can apply through a licensed tax agent.
What is the difference between gross and net salary in Kenya?
Gross salary is your pay before deductions. Net salary, or take-home pay, is what's left after PAYE, NSSF, SHIF, the Housing Levy and any other deductions such as loans, SACCO contributions or pension.
Sources
- Kenya Revenue Authority — PAYE
- Grant Thornton Kenya — NSSF Year 4 rates from 1 February 2026
- Social Health Authority — SHIF contributions
- Affordable Housing Act 2024
- Grant Thornton Kenya — Minimum wage guide 2026
- KRA — Individual income tax
- PwC Tax Summaries — Kenya individual income tax
- NSSF — National Social Security Fund
Links are for reference only. METRIKA is independent and not affiliated with or endorsed by these organisations.
Rates checked 6 Nov 2026. METRIKA gives estimates, not financial or tax advice.