Kenya tax rates 2026
Every rate our calculators use, with its legal source and the date we last checked it.
Quick answer
PAYE runs from 10% to 35% with KSh 2,400 monthly personal relief. NSSF is 6% up to KSh 108,000, SHIF is 2.75% (minimum KSh 300), the Housing Levy is 1.5%, VAT is 16%, Turnover Tax 1.5% and Capital Gains Tax 15%.
Jump to: PAYE bands & personal relief · NSSF Tier I & II (Year 4) · SHIF contribution · Affordable Housing Levy · VAT standard rate · Turnover Tax · Monthly Rental Income tax · Withholding tax (residents) · Capital Gains Tax · Stamp duty on property transfers · Withholding tax on investment interest · SACCO dividend withholding tax · KRA penalties and interest · Employment Act entitlements · Motor vehicle import taxes · M-Pesa consumer tariff · EPRA pump prices
PAYE bands & personal relief
| 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 |
Source: Income Tax Act (Cap 470) as amended by Finance Act 2023; unchanged by Finance Act 2026. Effective 1 July 2023. Verified 5 October 2026.
NSSF Tier I & II (Year 4)
| Tier I | 6% of the first KSh 9,000 |
|---|---|
| Tier II | 6% of pay between KSh 9,000 and KSh 108,000 |
| Maximum employee contribution | KSh 6,480 a month |
| Employer | Matches the employee amount |
Source: NSSF Act 2013, fourth-year rates. Effective 1 February 2026. Verified 5 October 2026.
SHIF contribution
| Rate | 2.75% of gross income |
|---|---|
| Minimum | KSh 300 a month |
| Maximum | No cap |
| Deducted before PAYE | Yes, since 27 December 2024 |
Source: Social Health Insurance Act 2023; deductible for PAYE under Tax Laws (Amendment) Act 2024. Effective 27 December 2024. Verified 5 October 2026.
Affordable Housing Levy
| Employee | 1.5% of gross pay |
|---|---|
| Employer | 1.5% of gross pay |
| Deducted before PAYE | Yes |
Source: Affordable Housing Act 2024. Effective 27 December 2024. Verified 5 October 2026.
VAT standard rate
| Standard rate | 16% |
|---|
Source: VAT Act 2013. Effective 2 September 2013. Verified 5 October 2026.
Turnover Tax
| Rate | 1.5% of gross sales |
|---|---|
| Applies to turnover | KSh 1,000,000 – KSh 25,000,000 a year |
| Due | 20th of the following month |
Source: Income Tax Act s.12C as amended by Tax Laws (Amendment) Act 2024. Effective 27 December 2024. Verified 5 October 2026.
Monthly Rental Income tax
| Rate | 7.5% of gross rent |
|---|---|
| Applies to annual rent | KSh 288,000 – KSh 15,000,000 |
| Due | 20th of the following month |
Source: Income Tax Act s.6A as amended by Finance Act 2023. Effective 1 January 2024. Verified 5 September 2026.
Withholding tax (residents)
| Management or professional fees | 5% |
|---|---|
| Consultancy, training or agency fees | 5% |
| Contractual fees (construction, etc.) | 3% |
| Commercial rent (resident) | 10% |
| Dividends (resident) | 5% |
| Interest on deposits | 15% |
Source: Income Tax Act, Third Schedule. Effective 1 July 2023. Verified 5 October 2026.
Capital Gains Tax
| Rate | 15% of the net gain |
|---|
Source: Finance Act 2023. Effective 1 August 2023. Verified 5 October 2026.
Stamp duty on property transfers
| Within a municipality | 4% |
|---|---|
| Outside a municipality | 2% |
| First-time home buyers (affordable housing) | Exempt |
Source: Stamp Duty Act. Effective 1 January 2020. Verified 5 October 2026.
Withholding tax on investment interest
| Money market funds | 15% WHT on interest |
|---|---|
| Treasury bills | 15% WHT on the discount |
| Treasury bonds under 10 years | 15% WHT |
| Treasury bonds of 10+ years | 10% WHT |
| Infrastructure bonds | Tax-free |
| Bank fixed deposits | 15% WHT |
Source: Income Tax Act, Third Schedule. Effective 1 July 2023. Verified 5 October 2026.
SACCO dividend withholding tax
| Withholding tax on dividends and interest | 5% |
|---|
Source: Income Tax Act, Third Schedule. Effective 1 July 2023. Verified 5 October 2026.
KRA penalties and interest
| Late filing (individuals) | 5% of tax due or KSh 2,000, whichever is higher |
|---|---|
| Late filing (companies) | 5% of tax due or KSh 20,000 |
| Late filing (PAYE) | 25% of tax due or KSh 10,000 |
| Late payment | 5% of tax due |
| Interest | 1% a month on unpaid tax |
Source: Tax Procedures Act 2015, ss. 38, 83, 83A. Effective 1 July 2023. Verified 5 October 2026.
Employment Act entitlements
| Severance (redundancy) | 15 days’ pay per completed year |
|---|---|
| Service pay | 15 days’ pay per completed year (non-NSSF members) |
| Annual leave | 21 working days (1.75 days a month) |
| Overtime | 1.5× on weekdays, 2× on rest days and public holidays |
| Maximum deductions from pay | Two-thirds of wages |
| NITA levy (employer) | KSh 50 per employee a month |
Source: Employment Act 2007 (ss. 19, 28, 35, 40) and Regulation of Wages Orders. Effective 22 October 2007. Verified 5 October 2026.
Motor vehicle import taxes
| Import duty | 35% of customs value |
|---|---|
| Excise duty | 20% (≤1,500cc), 25% (petrol ≤2,500cc / diesel ≤3,000cc), 35% above |
| VAT | 16% |
| Import Declaration Fee | 2.5% |
| Railway Development Levy | 2% |
| Maximum age | 8 years |
Source: EAC CET, Excise Duty Act, KRA CRSP depreciation schedule. Effective 1 July 2025. Verified 5 October 2026.
M-Pesa consumer tariff
| Send KSh 1 – 100 | Free |
|---|---|
| Send fee range | KSh 7 – 108 |
| Agent withdrawal range | KSh 11 – 309 |
| ATM withdrawal range | KSh 35 – 203 (up to KSh 20,000) |
| Maximum per transaction | KSh 250,000 |
| Daily limit | KSh 500,000 |
Source: Safaricom M-PESA consumer tariffs (send, agent and ATM withdrawal). Effective 1 January 2023. Verified 5 October 2026.
EPRA pump prices
| Nairobi | Petrol 214.03 · Diesel 217.86 · Kerosene 191.38 |
|---|---|
| Mombasa | Petrol 210.87 · Diesel 214.58 · Kerosene 188.09 |
| Kisumu | Petrol 213.69 · Diesel 218.08 · Kerosene 191.63 |
| Nakuru | Petrol 212.92 · Diesel 217.27 · Kerosene 190.81 |
Source: EPRA monthly maximum retail price review. Effective 15 September 2026. Verified 5 October 2026.
Recent changes
- 5 October 2026: PAYE now deducts SHIF before tax, as required since the Tax Laws (Amendment) Act 2024. Net pay rises by about KSh 619/month at a KSh 75,000 salary compared with our previous version.
- 5 October 2026: M-Pesa agent and ATM withdrawal fees corrected to Safaricom's current tariff (e.g. withdrawing KSh 5,000 at an agent costs KSh 69).
- 5 October 2026: Turnover Tax updated to 1.5% on turnover between KSh 1M and KSh 25M.
- 5 October 2026: Treasury bill returns now show the 15% withholding tax on the discount.
- 5 October 2026: Fuel prices updated to EPRA's 15 September to 14 October 2026 cycle; Treasury bill rates updated to the auction dated 5 October 2026.
- 14 September 2026: Finance Act 2026 reviewed: no change to PAYE bands, personal relief, SHIF, NSSF or Housing Levy.