PAYE Bands Just Changed: Zero Tax Below 30,000 KES
If you earn 30,000 KES or less, you now pay zero PAYE. The 30K-50K bracket dropped to 25%. Here is what changed and what to do before your next payroll run.
If you earn 30,000 KES or less, you no longer pay PAYE. Zero. If you’re in the 30K-50K range, your rate just dropped from 30% to 25%.
About 1.7 million salaried Kenyans wake up to a bigger paycheck this month.
Here’s what changed, what it means for your payslip, and what to do before your next payroll run.
What Changed
The Tax Laws (Amendment) Bill scrapped the old bottom bands and replaced them:
| Monthly Taxable Income | Old Rate | New Rate |
|---|---|---|
| Up to 24,000 KES | 10% | - |
| 24,001 - 32,333 KES | 25% | - |
| Up to 30,000 KES | - | 0% (exempt) |
| 30,001 - 50,000 KES | 30% | 25% |
| 50,001 - 500,000 KES | 30% | 30% |
| 500,001 - 800,000 KES | 32.5% | 32.5% |
| Above 800,000 KES | 35% | 35% |
Personal relief stays at 2,400 KES/month.
The tax-free ceiling moved from 24,000 to 30,000 KES. The old 10% and 25% bands are gone, replaced with a single zero-rate band. Everyone above 30K still benefits because the first chunk of their income is now untaxed.
What This Actually Means For Your Payslip
Forget the bands. Enter your salary and see exactly what changed.
Who Benefits Most
The 30K-50K bracket. An employee earning 40,000 KES keeps an extra 4,283 KES every month. That’s 51,400 KES a year they didn’t have before.
Above 50K, savings flatten at 4,783 KES/month. Only the lower bands changed, so higher earners see the same fixed benefit regardless of salary.
Below 30K, PAYE disappears entirely. For someone on 25K that’s only 250 KES, but for someone on 30K it’s 1,500 KES back in their pocket every month.
What To Do Before Next Payroll
If you’re using spreadsheets
- Replace the old 10% and 25% bands with the new zero-rate threshold (30,000 KES)
- Update the 30,001-50,000 band from 30% to 25%
- Personal relief is still 2,400 KES, don’t touch that
- Test with one employee before running full payroll
- Watch the band boundaries, that’s where errors happen
Time needed: 1-2 hours (and you’ll do this again next time bands change)
If you’re using payroll software
- Check that your provider has updated to the new rates
- Run a test payroll for one employee
- If the numbers look wrong, don’t run payroll. Incorrect PAYE means incorrect iTax filings, and KRA doesn’t care whose fault it was
- Tell your team about the change
Time needed: 30 minutes
If you’re using Kazisafi
Nothing. Rates are already updated. Run payroll as usual.
Time needed: 0 minutes
Why This Matters
New bands, same deadline. Get it wrong and your employees take home less than they should, or you file the wrong numbers with KRA.
Kazisafi already uses the new rates. You run payroll, we handle the math.