PAYE in Kenya 2026: Tax Bands, Reliefs and What You Pay on 25K to 200K

PAYE in Kenya is still charged on five bands running from 10% to 35%, as confirmed on KRA's official PAYE guide, checked October 2026. On a gross salary of KES 50,000 a month you pay about KES 5,846 in PAYE after reliefs and take home roughly KES 39,029, once NSSF, SHIF and the Affordable Housing Levy have also come off. Earn KES 25,000 or less and you currently pay no PAYE at all after the personal relief of KES 2,400 wipes it out. These bands and the relief amount have not moved since the Finance Act 2023, whatever you may have seen about a planned overhaul.

What are Kenya's PAYE tax bands for 2026?

These are marginal bands, so only the slice of your pay that falls in a band is taxed at that band's rate — not your whole salary. They've applied since 1 July 2023 under the Finance Act 2023, and KRA's own PAYE guide still lists them as current for the 2025/26 tax year.

Every resident employee also gets a personal relief of KES 2,400 a month (KES 28,800 a year), subtracted from the tax you'd otherwise owe, not from your pay before tax.

What gets deducted before PAYE is even calculated?

PAYE isn't charged on your full gross salary. Three deductions come off first, and KRA treats all three as allowable deductions that reduce the pay PAYE is calculated on:

• NSSF — your mandatory pension contribution.
• SHIF — the health cover levy that replaced NHIF.
• Affordable Housing Levy (AHL) — the housing fund contribution.

How much is NSSF in 2026?

NSSF is charged at 6% of pensionable pay from you, matched by 6% from your employer, split into two tiers. Since 1 February 2026, Tier I covers the first KES 9,000 of pay (up from KES 8,000) and Tier II covers KES 9,000.01 to KES 108,000 (up from KES 72,000), under the phased schedule in the NSSF Act, 2013. That caps your own monthly contribution at KES 6,480 once you earn KES 108,000 or more — your employer pays the same again on top, into your own NSSF account. Run your own gross pay through our NSSF calculator to see the Tier I and Tier II split. For the full tier-by-tier breakdown, how to check your balance and how to claim your NSSF benefits, see our guide to NSSF rates in Kenya.

How much is SHIF?

SHIF takes 2.75% of your gross salary, with a minimum of KES 300 a month and no upper limit, confirmed on the Social Health Authority's premium rates page. Unlike NSSF, there's no employer match — it's an employee-only deduction. For registration steps and how to pay via M-Pesa, see our SHIF and SHA contributions guide.

How much is the Affordable Housing Levy?

The Affordable Housing Levy is 1.5% of your gross salary from you, plus a matching 1.5% from your employer, under the Affordable Housing Act, 2024. KRA's PAYE guide confirms your own 1.5% share is an allowable deduction before tax, the same as NSSF and SHIF.

Employ a house help, nanny or gardener? Our house help salary calculator shows their take-home pay, your share of NSSF and the housing levy, and makes their payslips.

PAYE worked examples: what you actually pay, KES 25,000 to 200,000

Here's the full breakdown for common salary levels, using the current bands, reliefs and the February 2026 NSSF limits. Figures are rounded to the nearest shilling.

Say you're earning KES 40,000 a month. NSSF takes KES 2,400, the housing levy KES 600 and SHIF KES 1,100, leaving KES 35,900 as your taxable pay. Tax on that comes to KES 5,553, minus the KES 2,400 personal relief, for PAYE of KES 3,153 — leaving you with KES 32,747 in hand. Run your own number through our Kenya PAYE calculator rather than doing the arithmetic by hand, especially if you also claim insurance or mortgage relief.

Two things catch people out in this table. First, at KES 25,000 you pay zero PAYE — the three statutory deductions plus personal relief use up the whole tax bill, so what you lose is NSSF, SHIF and the housing levy, not PAYE. Second, your NSSF deduction stops growing once you cross KES 108,000 a month, which is why the jump from KES 100,000 to KES 150,000 in the table is driven almost entirely by PAYE and SHIF, not NSSF.

How to work out your own PAYE, step by step

1. Start with gross pay — basic salary plus allowances and any cash benefits, excluding non-cash benefits under KES 5,000 a month.
2. Deduct NSSF at 6% of pensionable pay, capped as above.
3. Deduct SHIF at 2.75% of gross (minimum KES 300).
4. Deduct the Affordable Housing Levy at 1.5% of gross.
5. Apply the tax bands to what's left (your taxable pay) to get gross tax.
6. Subtract your personal relief of KES 2,400, and insurance relief if you have it, to get PAYE payable.
7. Subtract PAYE from gross pay (after the three deductions) to get net pay.

If you also pay mortgage interest on a Kenyan home loan or contribute to a registered pension scheme beyond NSSF, those are deductible too — mortgage interest up to KES 30,000 a month and extra pension contributions up to a combined KES 30,000 a month, per KRA's guide.

What to watch out for

• Old calculators give you the wrong number. A lot of PAYE calculators still floating around online use the pre-February 2026 NSSF limits (KES 8,000 / KES 72,000) or ignore the housing levy entirely. If a tool says you'll take home more than the figures above, it's probably out of date.
• "PAYE" isn't your only deduction. If your net pay feels low, it's rarely PAYE alone — NSSF, SHIF and the housing levy together usually cost more than PAYE itself below about KES 60,000 a month.
• Talk of new PAYE bands is just that — talk, for now. Parliament has debated reworking the bands during Finance Bill 2026 sittings, but professional reviews of the final Act note it left the PAYE bands untouched. Don't budget around bands that aren't law yet; check KRA's iTax or this page for an update if that changes.
• You still need a KRA PIN and an annual return, even if your employer deducts PAYE correctly every month. See our guide on getting a KRA PIN if you don't have one, and how to file your KRA return each year — employment income still needs declaring, it's just not a nil return.
• What's left after all four deductions matters more than the deductions themselves. A SACCO with strong dividends or a digital savings app will do more for your net pay long-term than leaving it in a current account.

Frequently asked questions

How much is PAYE for a 50,000 salary in Kenya?

On a gross salary of KES 50,000, NSSF takes KES 3,000, the housing levy KES 750 and SHIF KES 1,375, leaving taxable pay of KES 44,875. Tax on that is KES 8,246; minus the KES 2,400 personal relief, PAYE comes to KES 5,846, for a net pay of about KES 39,029.

What is the current personal relief in Kenya?

Personal relief is KES 2,400 a month (KES 28,800 a year) for resident individuals. It's subtracted from the tax you owe, not from your salary, so it reduces your PAYE bill directly rather than your taxable pay.

Do you pay PAYE on NSSF, SHIF and housing levy contributions?

No. NSSF, SHIF and your 1.5% share of the Affordable Housing Levy are all allowable deductions, taken off your gross pay before KRA's tax bands are applied. This is why your taxable pay is always lower than your gross salary. See what that SHIF deduction actually pays for in hospital cover, including where it falls short.

What salary pays no PAYE in Kenya in 2026?

Roughly KES 25,000 a month and below currently results in zero PAYE, once NSSF, SHIF, the housing levy and the KES 2,400 personal relief are applied. The exact cut-off depends slightly on your specific NSSF deduction.

Has Kenya changed the PAYE tax bands in 2026?

Not yet. The bands have run from 10% to 35% since the Finance Act 2023, and professional reviews of the Finance Act 2026 confirm it did not touch them, despite public debate during the bill's passage. NSSF limits did change, from 1 February 2026.

Is the Affordable Housing Levy legal?

Yes. Kenya's High Court ruled the Affordable Housing Act, 2024 and its 1.5% levy constitutional in October 2024, and it remains in force. Both your 1.5% and your employer's matching 1.5% are compulsory on gross salary.