Since December 2024, SHIF and the Affordable Housing Levy are deducted before PAYE is calculated, and pension contributions are deductible up to KSh 30,000 a month.
Your employer also pays NSSF (matching yours, up to KSh 6,480) and 1.5% Housing Levy on top of your salary.
SHIF is 2.75% of gross salary with no upper limit.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
KRA monthly tax bands (2026)
Monthly taxable pay
Rate
First KSh 24,000
10%
Next KSh 8,333 (to 32,333)
25%
Next KSh 467,667 (to 500,000)
30%
Next KSh 300,000 (to 800,000)
32.5%
Above KSh 800,000
35%
The calculation, step by step
Gross pay – salary, allowances and taxable benefits.
Less allowable deductions – NSSF and other registered pension contributions (up to KSh 30,000), SHIF, the Affordable Housing Levy, mortgage interest and post-retirement medical fund contributions.
Tax on the bands applied to what is left.
Less reliefs – KSh 2,400 personal relief and insurance relief.
Worked example: KSh 80,000 a month
Gross salary KSh 80,000 a month
Taxable pay is Ksh 71,800.00 and PAYE Ksh 13,923.35 after the personal relief.
How PAYE is worked out
Gross salary
Ksh 80,000.00
Less pension (NSSF + other, max KSh 30,000)
−Ksh 4,800.00
Less SHIF and Housing Levy
−Ksh 3,400.00
Taxable pay
Ksh 71,800.00
Tax on the bands
Ksh 16,323.35
Less personal relief
−Ksh 2,400.00
PAYE
Ksh 13,923.35
Questions people ask
What are the PAYE bands in Kenya for 2026?
10% on the first KSh 24,000 a month, 25% on the next KSh 8,333, 30% on the next KSh 467,667, 32.5% on the next KSh 300,000 and 35% above KSh 800,000. The Finance Act 2026 did not change them.
What is the personal relief?
KSh 2,400 a month (KSh 28,800 a year), deducted from the tax. It means no PAYE is due until taxable pay passes KSh 24,000.
Are SHIF and the Housing Levy deducted before tax?
Yes. Since December 2024 both are allowable deductions, together with pension contributions up to KSh 30,000 a month, mortgage interest up to KSh 30,000 and post-retirement medical fund contributions up to KSh 15,000.
What is insurance relief?
15% of premiums you pay for life, health or education policies for yourself, your spouse or children, up to KSh 60,000 a year (KSh 5,000 a month). SHIF contributions do not qualify.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
