Kenya Guide
A detailed analysis of payroll statutory rates, contributions, progressive tax brackets, and compliance requirements in Kenya. Vetted by our local legal desk.
Interactive Calculation
Dynamic Compliance Estimator.
Input a gross salary below to view real-time statutory payroll deductions for both employee and employer.
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This estimator operates dynamically using current statutory formulas under the local laws of Kenya.
Detailed Payroll Breakdown
Statutory Coverage
Understanding Your Deductions.
Vetted summaries of local statutory regulations and payroll laws operating in this country.
NSSF (National Social Security Fund)
Tiered mandatory pension contributions based on the NSSF Act.
SHA / SHIF (Social Health Authority)
Universal healthcare funding replacing the older NHIF bracket system.
Affordable Housing Levy (AHL)
Mandatory national levy to fund affordable housing developments.
PAYE (Pay As You Earn)
Progressive personal income tax applied on monthly earnings.
| Salary Brackets (KES) | Tax Rate / Amount |
|---|---|
| 0 – 24,000 | 10% |
| 24,000 – 32,333 | 25% |
| 32,333 – 500,000 | 30% |
| 500,000 – 800,000 | 32.5% |
| Above 800,000 | 35% |
NITA Levy
Industrial training levy paid entirely by employers with 20+ workers.
Compliance FAQ
Answers From the Legal Desk.
PAYE is calculated progressively. The first KES 24,000 of monthly income is taxed at 10%, the next KES 8,333 at 25%, and any amount above KES 32,333 up to KES 500,000 at 30%. High income earners face brackets of 32.5% and 35%. A monthly Personal Relief of KES 2,400 is subtracted from the tax liability.
Under the Social Health Authority (SHA), SHIF requires employees to contribute 2.75% of their gross monthly salary. The minimum monthly contribution is KES 300, and there is no maximum limit. The employer contributes 1.1% of the gross monthly salary.
Both employer and employee contribute 6% of pensionable earnings, capped across three tiers. Tier 1 covers earnings up to KES 18,000, Tier 2 covers earnings from KES 18,001 up to KES 36,000, and Tier 3 (where voluntary) covers from KES 36,001 up to KES 72,000.
The Affordable Housing Levy is a statutory deduction from gross monthly earnings. The employee contributes 1.5% and the employer matches it with another 1.5%. There is no monthly cap for this deduction.
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