The current rates, in one place.
PAYE bands, SHIF, NSSF, the Affordable Housing Levy and Fringe Benefit Tax - kept current as KRA, NSSF and the Social Health Authority publish changes.
PAYE
Pay-As-You-Earn rates in effect from 1 July 2023, plus the personal reliefs and allowable deductions a Kenyan employee can claim.
| Monthly Taxable Pay (Ksh) | Annual Taxable Pay (Ksh) | Rate of Tax |
|---|---|---|
| Up to 24,000 | Up to 288,000 | 10.0% |
| 24,001 – 32,333 | 288,001 – 388,000 | 25.0% |
| 32,334 – 500,000 | 388,001 – 6,000,000 | 30.0% |
| 500,001 – 800,000 | 6,000,001 – 9,600,000 | 32.5% |
| Above 800,000 | Above 9,600,000 | 35.0% |
| Monthly Limit (Ksh) | Annual Limit (Ksh) | Effective Since | |
|---|---|---|---|
| Allowable Aggregate Benefits | 5,000 | 60,000 | 27 December 2024 |
| Allowable Meals Benefit | 5,000 | 60,000 | 27 December 2024 |
| Allowable Pension Fund Contribution | 30,000 | 360,000 | 27 December 2024 |
| Allowable Owner-Occupier Interest | 30,000 | 360,000 | 27 December 2024 |
| Personal Relief | 2,400 | 28,800 | 25 April 2020 |
| Insurance Relief | 5,000 | 60,000 | 1 January 2007 |
| Affordable Housing Relief | — | — | 27 December 2024 |
| Disability Exemption | 150,000 | 1,800,000 | 10 March 2010 |
Fringe Benefit Tax
Tax on the difference between the prevailing market interest rate and any below-market loans an employer extends to employees.
The employer is required to pay fringe benefit tax on any loans advanced to employees at an interest rate below the prevailing market interest rate. This applies to all loans issued after 11 June 1998, and to those issued on or before 11 June 1998 but whose terms and conditions have changed after this date.
| Quarter | Interest Rate (%) |
|---|---|
| January to March | 8 |
| April to June | 8 |
| July to September | — |
| October to December | — |
| Quarter | Interest Rate (%) |
|---|---|
| January to March | 13 |
| April to June | 9 |
| July to September | 8 |
| October to December | 8 |
SHIF
The Social Health Insurance Fund - successor to the NHIF, introduced under the Social Health Insurance Act, 2023.
| Employee contribution | 2.75% of gross monthly salary |
| Effective from | 1 October 2024 |
| Tax-deductible from | 27 December 2024 |
| Remitted to | Social Health Authority (SHA) |
The Social Health Insurance Act, 2023 introduced the Social Health Insurance Fund (SHIF) that effectively replaced the NHIF. Starting 1 October 2024, all employees are expected to pay 2.75% of their gross monthly salary to this fund. Employers are required to deduct the contributions and remit them to the Social Health Authority (SHA).
As from 27 December 2024, SHIF contributions are fully tax-deductible.
NSSF
National Social Security Fund - Tier I and Tier II contributions under the NSSF Act of 2013.
| Tier | Pensionable Pay (Ksh) | Max contribution |
|---|---|---|
| I | Up to 9,000 | 540 |
| II | 9,001 – 108,000 | 5,940 |
| Tier | Pensionable Pay (Ksh) | Max contribution |
|---|---|---|
| I | Up to 8,000 | 480 |
| II | 8,001 – 72,000 | 3,840 |
Under the NSSF Act of 2013, contributions to NSSF are divided into Tier I and Tier II. Organisations may opt out of Tier II contributions if they have an alternative pension scheme in place. The employer and employee each contribute 6% of pensionable pay, subject to the monthly limits above.
The employee's contribution is tax-deductible.
Housing Levy
The Affordable Housing Levy under the Affordable Housing Act of 2024.
| Employee contribution | 1.5% of gross monthly salary |
| Employer contribution | 1.5% of gross monthly salary |
| Effective from | 19 March 2024 |
| Tax-deductible from | 27 December 2024 |
The affordable housing levy was first introduced in July 2023 by the Finance Act of 2023. It ceased to be payable in January 2024 following a successful legal challenge. It was reintroduced two months later under the Affordable Housing Act of 2024.
With effect from 19 March 2024, the employee and employer are each required to pay 1.5% of monthly gross salary as housing levy. Starting 27 December 2024, the employee's payment is fully tax-deductible.
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