How is PAYE calculated in Kenya?
PAYE is charged on taxable income after deducting NSSF. Kenya applies progressive rates: 10%, 25%, 30%, 32.5%, and 35%, then subtracts personal relief of KES 2,400 per month.
Quick answers to common payroll and salary deduction questions in Kenya.
PAYE is charged on taxable income after deducting NSSF. Kenya applies progressive rates: 10%, 25%, 30%, 32.5%, and 35%, then subtracts personal relief of KES 2,400 per month.
SHIF replaced NHIF from October 2024. Employees contribute 2.75% of gross salary, and employers make a matching contribution.
NSSF is 6% of pensionable pay. Tier I applies to the first KES 8,000 and Tier II applies to the next KES 64,000. The current upper pensionable limit is KES 72,000.
The employee deduction is 1.5% of gross salary. Employers also contribute 1.5% on top of employee pay.
Yes. Employers can calculate salary deductions, generate payslips, and use payroll features for multiple employees.
Read more guides: PAYE guide • NSSF Tier guide • SHIF levy guide