Run monthly payroll with every statutory deduction at the current rates — SHIF, NSSF, the Affordable Housing Levy and PAYE — issue payslips and post the journal in one run.
Calculated in the right order, so PAYE is right too.
2.75% of gross pay, with the KES 300 minimum, deducted from each employee for the Social Health Authority.
6% from the employee and 6% from the employer, on pay up to the February 2026 upper limit of KES 108,000.
1.5% from the employee and a matching 1.5% from the employer on gross pay.
Tax from the KRA bands (10% to 35%) after allowable SHIF, NSSF and Housing Levy deductions, less the KES 2,400 monthly personal relief.
Digital payslips showing every deduction, available in the employee self-service portal.
Salary expense and every statutory liability post to the general ledger automatically.
Salaries, allowances and overtime from approved attendance.
SHIF, NSSF and Housing Levy calculated.
Tax on the remaining pay, less personal relief.
Payslips issued; remit by the 9th of next month.
| Topic | 2026 rule |
|---|---|
| PAYE | 10% to 35% bands, KES 2,400 monthly personal relief; due by the 9th of the following month |
| SHIF | 2.75% of gross pay (minimum KES 300), deducted from the employee |
| NSSF (from February 2026) | 6% employee + 6% employer on pay up to KES 108,000 (Tier I up to KES 9,000; Tier II above) |
| Affordable Housing Levy | 1.5% employee + 1.5% employer on gross pay |
Last reviewed October 2026. Tax and payroll content is general information — confirm your position with the Kenya Revenue Authority (KRA), the SHA, the NSSF or a registered tax agent.
Employee and employer each pay 6%. Tier I covers pay up to the lower limit of KES 9,000, and Tier II covers pay from KES 9,000 up to the upper limit of KES 108,000 — a maximum of KES 6,480 each a month.
SHIF is 2.75% of the employee’s gross pay, with a minimum of KES 300 and no upper cap. It is deducted from the employee.
Yes. Since December 2024, SHIF contributions and the employee’s Affordable Housing Levy are deducted from pay before PAYE is calculated, along with NSSF contributions.
PAYE is due by the 9th of the following month. SHIF and NSSF are also due early in the following month, and the Housing Levy within nine working days after the end of the month.