Need Expert Tax Advice?
+254 716 067 792Our tax advisory team helps individuals and organisations navigate KRA compliance, audits, and tax planning across Kenya and East Africa.
Calculate Your Tax
Select your income type, enter your figures, and get an instant breakdown.
Monthly Employment Income
Reduces taxable income (capped at KES 30,000/month)
2026 Rate Reference
PAYE Band 110% → KES 0–24K
PAYE Band 225% → KES 24K–32K
PAYE Band 330% → KES 32K–500K
PAYE Band 432.5% → KES 500K–800K
PAYE Band 535% → above KES 800K
Personal ReliefKES 2,400/month
SHIF2.75% (min KES 300)
NSSF Tier I6% of KES 9,000
NSSF Tier II6% of KES 9K–108K
Housing Levy1.5% of gross
WHT (Consultant)5% if fees ≥ KES 24K
WHT (Dividends)15% at source
FBT Market Rate8% (Q1 2026)
FBT Tax Rate30% of benefit
Gratuity (post Jul 2025)Fully exempt
Gratuity (pre Jul 2025)Taxable — spread 5 yrs
Enter your income details and click Calculate to see your full tax breakdown.
Kenya Tax Guide 2026
Understanding Your Tax Obligations
A plain-language guide to every deduction on your payslip — what it is, how it is calculated, and what it means for you.
NSSF
National Social Security FundContributions under the NSSF Act 2013, calculated on two tiers. The employer matches the employee contribution 1:1.
KES 540
Tier I — 6% of KES 9,000
6%
Tier II — up to KES 108K
- Employer matches contribution 1:1
- Reduces taxable income for PAYE
- Voluntary top-up deductible up to KES 30,000/month
- Remitted by 9th of the following month
SHIF
Social Health Insurance FundReplaced NHIF in October 2023 under the Social Health Insurance Act 2023. Administered by the Social Health Authority (SHA).
2.75%
of gross salary
KES 300
minimum per month
- No upper cap — applies to full gross salary
- Employee-only deduction (no employer match)
- Reduces taxable income for PAYE
- Self-employed pay directly via SHA portal
Housing Levy
Affordable Housing Act 2024Funds the government's affordable housing programme. Both employee and employer contribute, making the total 3% of gross salary.
1.5%
Employee
1.5%
Employer
3%
Total
- Applies to all public and private sector employees
- Self-employed contribute 1.5% of gross income
- Remitted via iTax by 9th of the following month
- Reduces taxable income for PAYE
Withholding Tax
Consultants & FreelancersDeducted at source by the client when paying consultancy fees. It is a prepayment against your annual income tax — not a final tax.
5%
on consultancy fees
15%
on dividends
- 5% WHT applies only on fees of KES 24,000/month or above
- Credited against your annual income tax on iTax
- Client issues WHT certificate (P10) for your records
- Excess WHT can be claimed as a refund from KRA
Key KRA Filing Deadlines 2026
Late filing: 5% of tax due or KES 20,000 (whichever is higher) + 1% interest per month.PAYE, NSSF & Housing Levy
9th of the following month
WHT Remittance
20th of the following month
Individual Tax Return (P9)
30 June 2026
Corporate Tax Return
6 months after year-end
Common Questions
Kenya Tax FAQs 2026
Answers to the questions we hear most from employees, consultants, and business owners.
The current tax-free threshold is KES 24,000/month (KES 288,000/year). After applying personal relief of KES 2,400/month, employees earning up to approximately KES 28,000/month pay no net PAYE. A proposed Tax Laws Amendment Bill (February 2026) would raise the threshold to KES 30,000 — this has not yet been enacted as at March 2026.
Yes. All individuals with a KRA PIN must file an annual income tax return (P9 form) by 30 June each year, even if your employer deducts PAYE. The return reconciles your total income and tax paid. Failure to file attracts a penalty of KES 20,000 or 5% of tax due — whichever is higher.
NSSF contributions (statutory and voluntary up to KES 30,000/month) are deducted from gross salary before calculating PAYE. This reduces your taxable income and therefore your PAYE liability. The same applies to approved pension fund contributions.
NHIF was replaced by SHIF under the Social Health Insurance Act 2023, effective October 2023. The key change: SHIF is a flat 2.75% of gross salary with no upper cap, replacing NHIF's tiered fixed amounts. The minimum is KES 300/month. It is administered by the Social Health Authority (SHA).
As a self-employed consultant, you pay income tax on your net profit (gross fees minus allowable expenses). Your clients deduct 5% WHT at source on fees of KES 24,000/month or above. You file an annual self-assessment return on iTax by 30 June and pay any residual tax after offsetting WHT credits. You must also pay SHIF and Housing Levy directly.
Our Tax Advisory team provides PAYE compliance reviews, KRA audit representation, tax planning for individuals and corporates, transfer pricing support, and iTax filing assistance. We help you stay compliant while minimising your tax burden within the law. Get in touch to discuss your needs.
