Every statutory deduction Kenyan employers make in 2026 — the rates, the caps, the order of the calculation and when to pay.
Kenyan payroll has to be done in the right order, because several deductions reduce the pay that PAYE is charged on:
Since December 2024, SHIF and the Housing Levy have been allowable deductions before PAYE, alongside NSSF.
From February 2026, the NSSF lower earnings limit is KES 9,000 and the upper earnings limit is KES 108,000. Employee and employer each contribute 6%:
| Tier | Contribution |
|---|---|
| Tier I | 6% of pay up to KES 9,000 — KES 540 each |
| Tier II | 6% of pay from KES 9,000 to KES 108,000 — up to KES 5,940 each |
| Maximum | KES 6,480 each a month |
SHIF replaced NHIF. Employees pay 2.75% of gross pay, with a minimum of KES 300 a month and no upper cap. There is no employer contribution.
The employee pays 1.5% of gross pay and the employer pays a matching 1.5%. The levy is due within nine working days after the end of the month.
| Monthly taxable pay | Rate |
|---|---|
| First KES 24,000 | 10% |
| Next KES 8,333 (to KES 32,333) | 25% |
| Next KES 467,667 (to KES 500,000) | 30% |
| Next KES 300,000 (to KES 800,000) | 32.5% |
| Above KES 800,000 | 35% |
Every resident employee gets personal relief of KES 2,400 a month, subtracted from the tax. PAYE is due by the 9th of the following month. Employers also pay the NITA levy of KES 50 per employee a month.
ETaxFlow’s Kenya payroll handles steps 2 to 4 in one run, and the HRMS handles step 1.
KES 108,000 a month from February 2026, with a lower limit of KES 9,000. Employee and employer each pay 6%, up to KES 6,480 a month.
2.75% of gross pay, minimum KES 300 a month, paid by the employee.
KES 2,400 a month for resident employees, subtracted from the PAYE calculated.
By the 9th of the following month.