Kenya Payroll in 2026: PAYE, SHIF, Housing Levy and NSSF Explained
Every deduction on a Kenyan payslip in 2026 — PAYE bands and personal relief, SHIF at 2.75%, the 1.5% Affordable Housing Levy and NSSF Tier I and II — with a worked KES 100,000 example.
By Vuplon Payroll Team · · 2 min read
The four statutory deductions
A Kenyan employer deducts four statutory amounts from pay: PAYE, NSSF, the Social Health Insurance Fund (SHIF) contribution, which replaced NHIF in October 2024, and the Affordable Housing Levy (AHL).
The order matters. Since the Tax Laws (Amendment) Act 2024, applied from December 2024 payroll, NSSF, SHIF and AHL are all deducted before PAYE is calculated, so taxable income is gross pay less those three.
PAYE bands and personal relief
PAYE is charged on monthly taxable income using five bands, then reduced by a personal relief of KES 2,400 a month.
| Monthly taxable income (KES) | Rate |
|---|---|
| First 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| 32,334 – 500,000 | 30% |
| 500,001 – 800,000 | 32.5% |
| Above 800,000 | 35% |
NSSF Tier I and Tier II
Under the NSSF Act 2013, now in its fourth year of phasing (from February 2026), employee and employer each contribute 6% of pensionable pay up to an upper earnings limit of KES 108,000. Pay up to the lower earnings limit of KES 9,000 is Tier I; the part between KES 9,000 and KES 108,000 is Tier II.
The most an employee pays is KES 6,480 a month, matched by the employer.
SHIF and the Housing Levy
SHIF is 2.75% of gross pay with a minimum of KES 300 a month, and is paid by the employee only.
The Affordable Housing Levy is 1.5% of gross pay from the employee, matched by 1.5% from the employer. Employers also pay the NITA training levy of KES 50 per employee per month.
Worked example: KES 100,000 a month
Taxable income is KES 89,750 after NSSF, SHIF and AHL. Tax on that before relief is KES 21,708; less the KES 2,400 relief, PAYE is KES 19,308. The employee takes home KES 70,442, and the job costs the employer KES 107,550.
| Employee (KES) | Employer (KES) | |
|---|---|---|
| NSSF (6%) | 6,000 | 6,000 |
| SHIF (2.75%) | 2,750 | — |
| Affordable Housing Levy (1.5%) | 1,500 | 1,500 |
| PAYE (after relief) | 19,308 | — |
| NITA levy | — | 50 |
| Net pay / total employer cost | 70,442 | 107,550 |
Deadlines
PAYE, NSSF and SHIF for a month are due by the 9th of the following month, and the Housing Levy within nine working days after the month ends. Run any salary through Vuplon's free Kenya PAYE calculator to see the full breakdown, employer cost included.