Contributing KSh 15,000 a month to a registered pension on a KSh 150,000 salary cuts PAYE by KSh 4,500 a month.
How pension tax relief works
Contributions to a registered retirement scheme reduce your taxable income, up to a cap of KSh 30,000 per month. If you contribute more than that, the excess still comes out of your pay but stops providing an additional PAYE benefit, so contributing well beyond the cap is a savings decision rather than a tax one.
This calculator estimates the saving by comparing your PAYE with and without the deductible contribution applied. Actual payslip figures may differ slightly depending on how your specific payroll system sequences pension alongside NSSF, SHIF and the Housing Levy.
Rates used in this calculator
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
Frequently asked questions
What's the maximum tax-deductible pension contribution in Kenya?
Contributions to a registered retirement benefits scheme are tax-deductible up to KSh 30,000 per month, or KSh 360,000 per year. Contributions above this cap still leave your pay but no longer reduce your taxable income.
Does my NSSF contribution count toward the KSh 30,000 pension relief cap?
NSSF contributions are typically treated as a separate statutory deduction ahead of the PAYE calculation, distinct from the voluntary or employer pension scheme contributions this KSh 30,000 cap applies to. Check with your scheme administrator if you're unsure how your specific arrangement is structured.
Can self-employed people also get this pension tax relief?
Yes, self-employed individuals contributing to an Individual Pension Plan can also claim tax relief up to the same KSh 30,000 monthly limit.