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PAYE Tax Rates Kenya 2026 — Complete Guide
Updated April 2026 — HelaBora
2026 PAYE Tax Bands (Monthly Income)
| Monthly Taxable Income (KES) | Tax Rate |
|---|---|
| 0 — 24,000 | 10% |
| 24,001 — 32,333 | 25% |
| 32,334 — 500,000 | 30% |
| 500,001 — 800,000 | 32.5% |
| Above 800,000 | 35% |
Personal Relief: KES 2,400 per month (KES 28,800 per year) Insurance Relief: 15% of insurance premiums, max KES 5,000/month
NSSF Contributions 2026 (Year 4)
From February 2026, NSSF moved to Year 4 of the phased increases:
| Tier | Employee Rate | Pensionable Pay Range | Max Contribution |
|---|---|---|---|
| Tier I | 6% | First KES 9,000 | KES 540 |
| Tier II | 6% | KES 9,001 — 108,000 | KES 5,940 |
| Total | KES 6,480/month max |
Your employer matches this with an equal contribution.
SHIF (Replacing NHIF)
Since October 2024, the National Health Insurance Fund (NHIF) was replaced by the Social Health Insurance Fund (SHIF) under SHA:
- -Rate: 2.75% of gross salary
- -No upper cap — unlike NHIF which had fixed bands
- -Example: KES 100,000 gross salary → KES 2,750 SHIF deduction
Housing Levy
- -Rate: 1.5% of gross salary
- -Employer matches with 1.5%
- -Example: KES 100,000 gross salary → KES 1,500 employee + KES 1,500 employer = KES 3,000 total
Example: Net Pay on KES 100,000 Gross Salary
| Item | Amount (KES) |
|---|---|
| Gross Salary | 100,000 |
| NSSF (Tier I + II) | -5,940 |
| Taxable Income | 94,060 |
| PAYE Tax | 20,518 |
| Less Personal Relief | -2,400 |
| PAYE Payable | -18,118 |
| SHIF (2.75%) | -2,750 |
| Housing Levy (1.5%) | -1,500 |
| Net Take-Home Pay | ~71,692 |
Use our PAYE Calculator for your exact figures.
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Frequently Asked Questions
What are the PAYE tax rates in Kenya for 2026?
Kenya's 2026 PAYE rates are: 10% (0-24K), 25% (24K-32.3K), 30% (32.3K-500K), 32.5% (500K-800K), and 35% (above 800K). Personal relief is KES 2,400/month.
What is SHIF and how much does it cost?
SHIF (Social Health Insurance Fund) replaced NHIF in October 2024. It's calculated at 2.75% of gross salary with no upper cap. A KES 100,000 salary means KES 2,750 SHIF deduction.
What changed with NSSF in 2026?
NSSF moved to Year 4 in February 2026. The lower earnings limit is now KES 9,000 and upper earnings limit is KES 108,000, meaning maximum employee contribution is KES 6,480/month.