Quick answer
A KSh 50,000 bonus on a KSh 80,000 salary leaves you KSh 32,337 after PAYE, SHIF and Housing Levy.
Why bonuses feel heavily taxed
Kenya has no separate bonus tax. Your bonus is added to that month’s salary and run through the normal PAYE bands. Because it sits on top of your salary, almost all of it falls into your highest band, usually 30%, so the tax on the bonus is higher than your average tax rate.
SHIF (2.75%) and the Housing Levy (1.5%) are also charged on the bonus because both are based on gross pay. NSSF usually does not rise, since most salaries are already above the KSh 108,000 Tier II ceiling or close to it.
Ways to keep more of a bonus
Ask whether your employer can pay part of the bonus into a registered pension scheme. Pension contributions are deductible up to KSh 30,000 a month, so a one-off contribution in the bonus month reduces the PAYE on it. Splitting a bonus across months does not usually help, because each month is still taxed at your top band.
Rates used in this calculator
| First KSh 24,000 of taxable pay | 10% |
|---|---|
| KSh 24,001 – 32,333 | 25% |
| KSh 32,334 – 500,000 | 30% |
| KSh 500,001 – 800,000 | 32.5% |
| Above KSh 800,000 | 35% |
| Personal relief | KSh 2,400 a month |
| Insurance relief | 15%, up to KSh 5,000 a month |
| Pension contributions deductible up to | KSh 30,000 a month |
| Mortgage interest deductible up to | KSh 30,000 a month |
| Rate | 2.75% of gross income |
|---|---|
| Minimum | KSh 300 a month |
| Maximum | No cap |
| Deducted before PAYE | Yes, since 27 December 2024 |
| Employee | 1.5% of gross pay |
|---|---|
| Employer | 1.5% of gross pay |
| Deducted before PAYE | Yes |