Question 1

How is PAYE calculated in Kenya 2026?

Accepted Answer

PAYE is calculated on taxable income (gross minus NSSF and pension) using progressive rates: 10% on first KES 24,000, 25% on next KES 8,333, 30% up to KES 500,000, 32.5% up to KES 800,000, and 35% above. Personal relief of KES 2,400/month is deducted.

Question 2

What are the NSSF rates for 2026?

Accepted Answer

NSSF Year 4 (from Feb 2026): 6% employee contribution on pensionable pay up to KES 36,000 (Tier I: first KES 7,000, Tier II: KES 7,001-36,000). Maximum employee contribution is KES 2,160/month.

PAYE Calculator Kenya 2026