Kenya statutory deductions, explained
Every Kenyan payslip carries four statutory deductions. Each has its own rate, its own ceiling or floor, and its own authority. The rates below are read from the same table OctaHr payroll uses, so this page updates when they change.
The order matters
NSSF, SHIF and the Housing Levy are deducted from gross pay before PAYE is worked out. PAYE is then charged on what's left, and personal relief is subtracted from the tax.
- Start with gross pay: basic salary plus taxable allowances.
- Deduct NSSF, SHIF and the Housing Levy.
- Apply the PAYE bands to the remainder.
- Subtract personal relief. If the result is below zero, PAYE is zero.
Contributions
| Deduction | Employee rate |
|---|---|
| NSSF Tier I | 6% of pay up to KES 9,000 |
| NSSF Tier II | 6% of pay from KES 9,000 to KES 108,000 |
| SHIF | 2.75% of gross, minimum KES 300 |
| Housing Levy | 1.5% of gross, matched by the employer |
NSSF is split into two tiers. Tier I covers pay up to the lower earnings limit; Tier II covers pay between the lower and upper limits. Pay above the upper limit attracts no further NSSF.
PAYE
| Monthly taxable pay | Rate |
|---|---|
| First KES 24,000 | 10% |
| KES 24,001 to KES 32,333 | 25% |
| KES 32,334 to KES 500,000 | 30% |
| KES 500,001 to KES 800,000 | 32.5% |
| Above KES 800,000 | 35% |
| Personal relief | −KES 2,400 |
Check a salary
Use the net pay calculator to see every line for a given gross, or the PAYE calculator to see how the tax is built up.