The order of deductions on a Kenyan payslip
- NSSF: 6% of pay up to the upper earnings limit of KES 108,000, split into Tier I (up to KES 9,000) and Tier II (the rest).
- SHIF: 2.75% of gross salary, never less than KES 300 a month and with no upper limit.
- Affordable Housing Levy: 1.5% of gross salary, with the employer paying the same.
- Taxable pay: gross minus the three items above.
- PAYE: the monthly bands applied to taxable pay, minus personal relief of KES 2,400 and any insurance relief.
The same national rules apply in Nairobi, Mombasa, Kisumu or anywhere else in the country, so a net salary works out the same wherever the job is.
Worked example: KSh 80,000 a month
| Item | Per month | Per year |
|---|---|---|
| Gross salary | KES 80,000 | KES 960,000 |
| NSSF Tier I and II | −KES 4,800 | −KES 57,600 |
| SHIF | −KES 2,200 | −KES 26,400 |
| Housing Levy | −KES 1,200 | −KES 14,400 |
| Taxable pay | KES 71,800 | KES 861,600 |
| Tax on the bands | KES 16,323.35 | KES 195,880.20 |
| Personal relief | −KES 2,400 | −KES 28,800 |
| PAYE | −KES 13,923.35 | −KES 167,080.20 |
| Net pay | KES 57,876.65 | KES 694,519.80 |
NSSF here is KES 540 for Tier I plus KES 4,260 for Tier II. Taxable pay of KES 71,800 reaches the 30% band, but the effective PAYE rate on gross is only 17.4%.
PAYE tax bands and personal relief
The monthly bands have been unchanged since July 2023:
| Monthly taxable pay | Rate |
|---|---|
| First KES 24,000 | 10% |
| Next KES 8,333 (to KES 32,333) | 25% |
| Next KES 467,667 (to KES 500,000) | 30% |
| Next KES 300,000 (to KES 800,000) | 32.5% |
| Above KES 800,000 | 35% |
Every resident employee gets personal relief of KES 2,400 a month (KES 28,800 a year), taken off the tax, not the income. Combined with the first band this means no PAYE on taxable pay of KES 24,000 a month or less.
SHIF and the Housing Levy are now deducted before PAYE
The Tax Laws (Amendment) Act 2024 changed how the health and housing contributions are treated. Before it, employees received insurance style reliefs worth 15% of the amounts. Now the full SHIF contribution and the levy are subtracted from pay before the tax bands apply, which is worth up to 35% at the top rate.
On KES 80,000, PAYE is KES 13,923.35 a month. If SHIF and the levy were not deductible, it would be KES 14,943.35. The deductibility saves KES 1,020 a month in tax at this salary.
NSSF contributions from February 2026
The NSSF Act 2013 phases in higher limits each February. Year 4 raised the lower earnings limit to KES 9,000 and the upper limit to KES 108,000. Employee and employer each pay 6%:
| Tier | Pay band | Employee per month (maximum) |
|---|---|---|
| Tier I | Up to KES 9,000 | KES 540 |
| Tier II | KES 9,000 to KES 108,000 | KES 5,940 |
| Total | Up to KES 108,000 | KES 6,480 |
Pension contributions are deductible up to KSh 30,000 a month, so all of the NSSF deduction lowers taxable pay. Extra voluntary pension contributions through payroll would lower it further; this calculator covers NSSF only.
Net salary at six pay levels in Kenya
Monthly figures; statutory contributions are NSSF, SHIF and the Housing Levy together.
| Gross per month | Contributions | PAYE | Net pay | Total deductions |
|---|---|---|---|---|
| KES 30,000 | KES 3,075 | KES 731.25 | KES 26,193.75 | 12.7% |
| KES 50,000 | KES 5,125 | KES 5,845.85 | KES 39,029.15 | 21.9% |
| KES 80,000 | KES 8,200 | KES 13,923.35 | KES 57,876.65 | 27.7% |
| KES 150,000 | KES 12,855 | KES 33,526.85 | KES 103,618.15 | 30.9% |
| KES 300,000 | KES 19,230 | KES 76,614.35 | KES 204,155.65 | 31.9% |
| KES 1,000,000 | KES 48,980 | KES 292,740.35 | KES 658,279.65 | 34.2% |
To go the other way and find the gross that delivers a given take home figure, use the Net to Gross Calculator. For other East African payslips see the Uganda Gross to Net Calculator.
Insurance relief and what counts as taxable pay
Premiums you pay for life, health or education policies covering yourself, your spouse or children earn insurance relief of 15% of the premium, capped at KES 5,000 a month. Enter monthly premiums in the optional field: with KES 4,000 of premiums, PAYE on KES 80,000 drops to KES 13,323.35.
- Taxable: basic pay, house and transport allowances, overtime, bonuses, leave pay and most benefits in kind.
- Exempt or limited: per diem within limits, meals up to a small monthly value, and employer pension contributions within the cap.
Assumptions behind the Kenya figures
- Resident employee with one employer, paid the same amount every month of 2026.
- NSSF on the Year 4 rates for all twelve months; in January 2026 the lower Year 3 limits still applied.
- No disability exemption, mortgage interest relief, post retirement medical fund or voluntary pension.
- The yearly view multiplies one month by twelve.
Sources: Kenya Revenue Authority PAYE guidance, the Social Health Authority premium rates, and the government notice to employers on the Year 4 (2026) NSSF contribution rates. Rates for 2026.
Frequently Asked Questions
How much is KSh 80,000 gross after tax in Kenya?
KES 57,876.65 a month in 2026, after NSSF KES 4,800, SHIF KES 2,200, the Housing Levy KES 1,200 and PAYE KES 13,923.35.
Is this a gross tax calculator for Kenya as well?
Yes. It shows the PAYE charged on a gross salary next to the statutory contributions, so you can see both the tax and the total taken from pay.
What is the maximum NSSF deduction in 2026?
KES 6,480 a month from the employee from February 2026, reached at pay of KES 108,000 or more. The employer adds the same.
Is SHIF deducted before PAYE?
Yes. Since the Tax Laws (Amendment) Act 2024, SHIF, the Affordable Housing Levy and NSSF are all deducted from gross pay before PAYE is calculated.
Does a salary in Nairobi or Mombasa give a different net pay?
No. PAYE, SHIF, the levy and NSSF are national, so the same gross gives the same net salary in every county.
From what salary do you start paying PAYE?
Tax starts once taxable pay passes KES 24,000 a month, because the personal relief of KES 2,400 cancels the 10% band up to that point.