How to calculate PAYE in Kenya (step by step)
1. Gross taxable pay: Add base salary and taxable cash benefits.
2. Allowable deductions: Subtract NSSF, SHIF (2.75%), Affordable Housing Levy (1.5%), and qualifying pension (up to KSh 30,000) to get taxable pay.
3. Apply PAYE bands: Use Kenya's graduated tax bands (10% to 35%) to get gross PAYE.
4. Apply reliefs: Deduct personal relief (KSh 2,400) and insurance relief (15% of premiums, capped at KSh 5,000) for your final PAYE.
5. Get net pay: Net = gross taxable - NSSF (employee) - SHIF - Housing Levy - pension - insurance - other deductions - PAYE.
Use this tool to quickly work out net salary for KSh 50,000, KSh 70,000, KSh 100,000 or any amount. Just enter your gross salary and any deductions to see your full breakdown.