Kenya Finance CalculatorGuides / Salary Tools
Kenya PAYE Tax Bands 2026 Explained (With Examples)
6 min read · Updated 15 October 2026 · More salary tools
Pay As You Earn (PAYE) is the income tax that Kenyan employers deduct from employee salaries every month and remit to the Kenya Revenue Authority (KRA). It is calculated using a progressive band system, which means higher portions of your income are taxed at higher rates.
This guide explains the 2026 PAYE bands, the reliefs that reduce your tax, the statutory deductions that lower your taxable pay, and a worked example so you can see exactly how net salary is reached.
Kenya PAYE tax bands in 2026
Resident individuals in Kenya are taxed on a graduated scale. Each band applies only to the income that falls inside it, and the bands are applied in order from lowest to highest.
Individual income tax bands applied to monthly taxable pay
| Taxable monthly income | Rate | Tax on this band |
|---|---|---|
| First KSh 24,000 | 10% | KSh 2,400 |
| Next KSh 8,333 (24,001 – 32,333) | 25% | KSh 2,083.25 |
| Next KSh 467,667 (32,334 – 500,000) | 30% | Up to KSh 140,300 |
| Next KSh 300,000 (500,001 – 800,000) | 32.5% | Up to KSh 97,500 |
| Above KSh 800,000 | 35% | 35% of the remainder |
Reliefs that reduce your PAYE
Tax reliefs are deducted from the gross tax amount, not from your income. Every resident taxpayer receives personal relief automatically, and additional reliefs can apply depending on your circumstances.
- Personal relief: KSh 2,400 per month (KSh 28,800 per year) for every resident individual.
- Insurance relief: 15% of qualifying life or health insurance premiums, capped at KSh 5,000 per month.
- Pension relief is applied indirectly because qualifying pension contributions reduce taxable pay (up to KSh 30,000 per month).
Deductions that reduce taxable pay before PAYE
Some deductions are allowed before tax is calculated. This lowers your taxable pay and therefore the tax you pay.
- NSSF contributions (employee share).
- SHIF contribution at 2.75% of gross salary.
- Affordable Housing Levy at 1.5% of gross salary.
- Qualifying registered pension contributions, capped at KSh 30,000 per month.
Worked example: PAYE and net pay on KSh 100,000
Assume a gross monthly salary of KSh 100,000 with no additional benefits, pension contributions or insurance premiums.
Estimating net pay for a KSh 100,000 gross salary
| Item | Amount |
|---|---|
| Gross taxable income | KSh 100,000 |
| Employee NSSF (6%) | KSh 6,000 |
| SHIF (2.75%) | KSh 2,750 |
| Affordable Housing Levy (1.5%) | KSh 1,500 |
| Taxable pay | KSh 89,750 |
| PAYE before relief | KSh 21,708 |
| Less personal relief | KSh 2,400 |
| Final PAYE | KSh 19,308 |
| Estimated net pay | KSh 70,442 |
Good to know: Figures are rounded for readability. Use the calculator for exact amounts, then compare against your payslip.
How to calculate PAYE step by step
- Step 1: Add base salary and any taxable cash benefits to get gross taxable pay.
- Step 2: Subtract allowable deductions (NSSF, SHIF, Housing Levy and qualifying pension) to get taxable pay.
- Step 3: Apply the graduated bands from 10% to 35% to taxable pay to get gross PAYE.
- Step 4: Deduct personal relief and any insurance relief to get final PAYE.
- Step 5: Subtract PAYE and all deductions from gross pay to get your net salary.
When PAYE is due
Employers must deduct and remit PAYE, the Affordable Housing Levy and other statutory deductions to KRA through iTax on or before the 9th day of the following month. PAYE is a final tax for salaried employees, so you normally do not need to file a separate return unless you have other income.
Try the calculators
Free calculators for this topic
Quick Answers
Kenya PAYE Tax Bands 2026 Explained FAQs
What is the highest PAYE rate in Kenya in 2026?
The highest PAYE rate is 35%, which applies to monthly taxable income above KSh 800,000.
Is the KSh 2,400 personal relief per month or per year?
Personal relief is KSh 2,400 per month, which works out to KSh 28,800 per year, and is deducted directly from your gross tax.
Do NSSF and SHIF reduce my taxable income?
Yes. NSSF, SHIF, the Affordable Housing Levy and qualifying pension contributions are allowable deductions that reduce taxable pay before PAYE is applied.