Question 1

How is PAYE calculated in Kenya in 2026?

Accepted Answer

Kenya PAYE is calculated using progressive tax bands under Finance Act 2023: 10% on the first KES 24,000, 25% on the next KES 8,333, 30% on the next KES 467,667, 32.5% on the next KES 300,000, and 35% on amounts above KES 800,000 per month. A personal relief of KES 2,400/month is deducted from the tax due. SHIF and Housing Levy are also deductible before PAYE from December 2024.

Question 2

How much is NSSF deduction in Kenya 2026?

Accepted Answer

From February 2025, NSSF contributions under the NSSF Act 2013 are: Tier 1 at 6% on the first KES 8,000 of gross salary, and Tier 2 at 6% on the amount between KES 8,001 and KES 72,000. Both employer and employee contribute equally. This calculator automatically applies the correct rate for the selected month and year.

Question 3

What is SHIF and how is it different from NHIF?

Accepted Answer

SHIF (Social Health Insurance Fund) replaced NHIF effective October 2024. Unlike NHIF which used a fixed tiered table, SHIF is calculated as 2.75% of an employee's gross salary with a minimum contribution of KES 300 per month. The switch means higher earners contribute more than they did under NHIF.

Question 4

What is the Affordable Housing Levy and who must pay it?

Accepted Answer

The Affordable Housing Levy (AHL) was introduced in July 2023 at 1.5% of gross salary, paid by both the employee and employer. It funds the government's affordable housing programme. Effective December 2024, the employee's share is deductible before PAYE calculation, reducing taxable income.

Question 5

When must PAYE be remitted to KRA?

Accepted Answer

PAYE must be remitted to the Kenya Revenue Authority (KRA) by the 9th of the month following the month in which the salaries were paid. For example, PAYE for January salaries is due by 9 February. Late payment attracts a 5% penalty on the unpaid amount plus interest.

Question 6

What is the personal relief amount in Kenya?

Accepted Answer

The personal relief in Kenya is KES 2,400 per month (KES 28,800 per year). It is deducted directly from the computed income tax before arriving at the final PAYE payable. Every resident employee earning above KES 24,001 per month is entitled to personal relief.

Question 7

What is NSSF Tier 1 and Tier 2?

Accepted Answer

Under the NSSF Act 2013, Tier 1 is the 6% contribution on the lower earnings limit — the first KES 8,000 of gross salary. Tier 2 is the 6% contribution on the amount between KES 8,001 and the upper earnings limit. Both employer and employee pay equal contributions. This calculator applies the correct tiers based on the selected payroll month and year.

Question 8

What is a P9 form and when is it issued?

Accepted Answer

A P9 form is an annual tax deduction card issued by an employer to each employee. It summarises the total gross pay, total PAYE deducted, personal relief, and chargeable pay for the full tax year (January to December). Employers must issue P9 forms to employees by 28 February of the following year so employees can file their individual tax returns.

Question 9

What is a P10 return and when is it due?

Accepted Answer

A P10 is the employer's annual PAYE return submitted to KRA, summarising all employees' earnings and deductions for the year. It is submitted via KRA iTax and is due by 30 June of the following year. This calculator can generate a P10-formatted CSV file for each payslip calculation.

Question 10

Is this PAYE calculator free to use?

Accepted Answer

Yes, all PAYE, NSSF, SHIF, and Housing Levy calculations are completely free with no registration required. Downloading a formatted professional payslip PDF costs KES 10 per payslip, paid via M-Pesa.

Monthly Bands of Taxable Income (KES)	Tax Rate
0 – 24,000	10%
On the next 8,333	25%
On the next 467,667	30%
On the next 300,000	32.5%
On amounts over 800,000	35%

Deduction	Rate	Cap / Notes
PAYE	Progressive 10%–35%	Personal Relief KES 2,400/mo
NSSF (2025–2026)	6% Tier 1 + 6% Tier 2	Tier 1: up to KES 8,000; Tier 2: up to KES 72,000. Employer matches.
SHIF	2.75% of gross	Min KES 300/mo · From Oct 2024 (replaced NHIF)
Housing Levy	1.5% of gross	Employee + Employer each pay 1.5% · From Jul 2023
NITA	KES 50/mo	Employer pays · National Industrial Training Authority

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Free Kenya PAYE Calculator 2026 — Finance Act, SHIF, NSSF & Housing Levy

PAYE Calculator (Based on Finance Act 2023)

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