Every Payroll Deduction in Kenya, Explained (2026)
PAYE, NSSF, SHIF, Housing Levy, NITA. All the statutory deductions in one place, with current rates and how to calculate them.
If you run payroll in Kenya, you’re responsible for at least five statutory deductions. Miss one, calculate it wrong, or file it late, and you’re the one KRA comes looking for.
This is every deduction you need to know about in 2026, how to calculate each one, and when to remit.
PAYE (Pay As You Earn)
Income tax deducted from employee salaries and remitted to KRA.
2026 Monthly Tax Bands
| Monthly Income (KES) | Rate |
|---|---|
| Up to 24,000 | 10% |
| 24,001 - 32,333 | 25% |
| 32,334 - 500,000 | 30% |
| 500,001 - 800,000 | 32.5% |
| Above 800,000 | 35% |
Personal relief: 2,400 KES/month (deducted from calculated tax)
Insurance relief: 15% of health insurance premiums, capped at 5,000 KES/month
Deadline: 9th of the following month
How It Works
Calculate tax on gross salary using the bands above, subtract personal relief (and insurance relief if applicable). The result is what you remit to KRA.
Most errors happen at the band boundaries. An employee earning 32,500 KES doesn’t pay 30% on everything, they pay 10% on the first 24,000, 25% on the next 8,333, and 30% on the remaining 167.
NSSF (National Social Security Fund)
Retirement contributions shared equally between employer and employee.
2026 Rates (Effective February 1)
| Component | Limit | Rate |
|---|---|---|
| Tier I | First 9,000 KES | 6% |
| Tier II | 9,001 - 108,000 KES | 6% |
Employee contribution: 6% of pensionable pay (capped at 108,000 KES)
Employer match: Same amount on top
Deadline: 15th of the following month
Example
Employee earning 80,000 KES:
- Tier I: 9,000 × 6% = 540 KES
- Tier II: (80,000 - 9,000) × 6% = 4,260 KES
- Total employee contribution: 4,800 KES
- Employer pays an additional 4,800 KES
SHIF (Social Health Insurance Fund)
Replaced the old NHIF. Health insurance contributions based on gross salary.
2026 Rate
2.75% of gross salary
Shared equally:
- Employee: 1.375%
- Employer: 1.375%
Deadline: 9th of the following month
Example
Employee earning 80,000 KES:
- Employee contribution: 80,000 × 1.375% = 1,100 KES
- Employer contribution: 1,100 KES
Housing Levy
Funds the Affordable Housing Programme.
2026 Rate
1.5% of gross salary
Shared equally:
- Employee: 0.75%
- Employer: 0.75%
Deadline: 9th of the following month
Example
Employee earning 80,000 KES:
- Employee contribution: 80,000 × 0.75% = 600 KES
- Employer contribution: 600 KES
NITA (National Industrial Training Authority)
A flat levy paid by the employer only. Not deducted from employee salary.
Rate: 50 KES per employee per month
Deadline: 9th of the following month
The Full Picture
Enter any gross salary to see exactly what gets deducted, what the employer pays on top, and what the employee takes home.
When to File
| Deduction | Deadline | Where |
|---|---|---|
| PAYE | 9th of following month | iTax |
| NSSF | 15th of following month | NSSF portal |
| SHIF | 9th of following month | eCitizen / SHA portal |
| Housing Levy | 9th of following month | iTax |
| NITA | 9th of following month | NITA portal |
Miss any of these and penalties start accruing immediately.
Why This Matters
Every month, these five deductions need to be calculated correctly, deducted from the right amounts, and remitted to the right portals before the right deadlines. For every employee on your payroll.
Get it right and nobody notices. Get it wrong and everyone notices.
Kazisafi calculates all five automatically. When rates change, we update them. You run payroll and we generate the reports you need for filing.