Quick answer
On a gross salary of KSh 75,000 a month in Kenya, net pay is KSh 54,735 after PAYE of KSh 12,577, NSSF of KSh 4,500, SHIF of KSh 2,063 and Housing Levy of KSh 1,125.
How PAYE is calculated in Kenya
Pay As You Earn (PAYE) is Kenya’s income tax on employment earnings, deducted by your employer before you are paid. It is graduated: different slices of your income are taxed at 10%, 25%, 30%, 32.5% and 35%.
Before PAYE is worked out, your gross salary is reduced by three statutory deductions: NSSF, SHIF and the Affordable Housing Levy. What is left is your taxable income, and that is the figure the bands apply to. Since the Tax Laws (Amendment) Act 2024, SHIF and the Housing Levy are both allowable deductions, which lowers PAYE for everyone who pays them.
A personal relief of KSh 2,400 a month is then subtracted from the tax itself, not from your income. If you pay life or education insurance premiums, a further 15% relief applies, up to KSh 5,000 a month.
A worked example
On a gross salary of KSh 75,000: NSSF is KSh 4,500, SHIF is KSh 2,063 and the Housing Levy is KSh 1,125, leaving taxable income of KSh 67,313. The bands give PAYE of KSh 14,977 before relief. After the KSh 2,400 relief, PAYE is KSh 12,577 and take-home pay is KSh 54,735.
What changed in 2026
The Finance Act 2026 left the PAYE bands, personal relief, SHIF and Housing Levy unchanged. NSSF limits rose in February 2026 to KSh 9,000 (Tier I) and KSh 108,000 (Tier II), so anyone earning above KSh 72,000 now pays up to KSh 6,480 a month. See the full comparison on our PAYE 2025 vs 2026 page.
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 |
| 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 |
| 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 |
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