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

Your payslip shows gross pay, then a string of deductions, and PAYE is usually the biggest. On KES 25,000 a month or less, you pay none once personal relief is applied. Above that, PAYE rises in five steps from 10% to 35%.

On KES 50,000 a month, you pay about KES 5,846 in PAYE and take home roughly KES 39,029 after NSSF, SHIF and the Housing Levy. The bands haven't changed since 2023, according to KRA's official PAYE guide.

What are Kenya's PAYE tax bands?

These bands work in slices: only the part 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 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 compulsory pension contribution.
• SHIF: the health cover levy that replaced NHIF.
• Affordable Housing Levy (AHL): the housing fund contribution.

How much is NSSF?

NSSF is 6% of pensionable pay from you, matched by 6% from your employer, in 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 step-by-step schedule in the NSSF Act, 2013. So your own monthly contribution stops at KES 6,480 once you earn KES 108,000 or more, and your employer pays the same again into your NSSF account. Use our NSSF calculator to see the Tier I and Tier II split for your pay. For the full breakdown, how to check your balance and how to claim, 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, as the Social Health Authority's premium rates page confirms. Unlike NSSF, your employer doesn't match it: only you pay. For registration and how to pay by 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 and your share of NSSF and the housing levy, and makes their payslips. Since the Finance Act 2026, KRA can also chase unpaid housing levy the same way it chases unpaid tax. See our guide on KRA housing levy enforcement and arrears if you want to check that your own employer is paying over what it deducts.

PAYE worked examples: what you 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 earn 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, so your PAYE is KES 3,153. That leaves you KES 32,747 in hand. Use our Kenya PAYE calculator for your own figure rather than doing the sums 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 no PAYE at all: the three deductions plus personal relief cancel out 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 pass KES 108,000 a month, which is why the jump from KES 100,000 to KES 150,000 in the table comes almost entirely from 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, leaving out 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 pay into a registered pension scheme on top of 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, according to KRA's guide.

Payslip mistakes to look 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, PAYE is rarely the only reason. Below about KES 60,000 a month, NSSF, SHIF and the housing levy together usually cost more than PAYE itself.
• New PAYE bands are only talk for now. Parliament discussed changing the bands during the Finance Bill 2026 debates, but professional reviews of the final Act say it left the PAYE bands unchanged. Don't budget around bands that aren't law. Check KRA's iTax or this page for updates if that changes.
• You still need a KRA PIN and a yearly 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 has to be declared, so it isn't 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.

Bonuses are taxed through PAYE too; see how bonus tax works in Kenya. If you have a disability, you may not pay PAYE on your first KES 150,000 a month: see NCPWD registration and the tax exemption.

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 pays for in hospital cover, including where it falls short.

What salary pays no PAYE in Kenya?

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?

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.