Republic of Kenya — PAYE, VAT, NSSF, SHIF, Housing Levy, Excise Duties 2026
💰 PAYE Calculator (Pay As You Earn)
Calculate annual personal income tax under Kenya's progressive PAYE system (Income Tax Act, Cap 470). Top marginal rate: 35%. Personal relief of KSh 28,800/year is applied automatically.
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📌 Reliefs & Deductions:
Personal relief: KSh 2,400/month (KSh 28,800/year) — applied automatically. Insurance relief: 15% of life insurance or registered pension contributions (max KSh 6,000/year for life insurance). Additional exemptions include: leave pay passage, medical allowances from employer, and mortgage interest relief (KSh 25,000/month cap). Note: Housing Levy (1.5%) and NSSF/SHIF are calculated separately in the NSSF/SHIF tab.
📊 KRA PAYE Tax Brackets 2026
Progressive personal income tax rates for resident individuals in Kenya, per the Income Tax Act (Cap 470).
Lower Limit (KSh)
Upper Limit (KSh)
Fixed (KSh)
Rate %
0
288,000
0
10%
288,001
388,000
28,800
25%
388,001
500,000
53,800
30%
500,001
700,000
87,400
32.5%
700,001
Above
152,400
35%
📌 Formula:
Tax = Fixed Amount + Rate × (Chargeable Income − Lower Limit). Personal relief of KSh 28,800/year is then deducted from the gross tax.
🏢 Statutory Deductions Overview
Item
Employee
Employer
NSSF (Pension)
6%
6%
SHIF (Health Insurance)
2.75%
—
Affordable Housing Levy
1.5%
1.5%
Total Statutory
10.25%
7.5%
📌 Note:
NSSF is capped at the Upper Earnings Limit (KSh 18,000/month). SHIF is calculated on gross salary with no cap. Housing Levy applies to all employed persons with a minimum of KSh 360/month. All statutory contributions are generally tax-deductible.
🧾 VAT Calculator (Value Added Tax)
Standard rate: 16%. Zero-rated: exports, agricultural produce supplied to exporters. Exempt: unprocessed food, financial services, medical services, education, residential rent.
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📌 VAT-Exempt Supplies:
Unprocessed food items (maize, wheat, rice, sugar, milk, bread), financial and insurance services, medical services, educational services, supply of water, residential rent, and international transport services. Petroleum products are subject to VAT at 16%.
👥 NSSF, SHIF & Housing Levy Calculator
Calculate mandatory statutory deductions: NSSF (pension), SHIF (health insurance), and the Affordable Housing Levy under the Affordable Housing Act 2024.
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📌 Statutory Schemes:NSSF: 6% employee + 6% employer on pensionable earnings, capped at Upper Earnings Limit (KSh 18,000/month). SHIF: 2.75% of gross salary (employee), replaced NHIF under the Social Health Insurance Act 2023. Housing Levy: 1.5% employee + 1.5% employer under the Affordable Housing Act 2024, minimum KSh 360/month.
🍺 Excise Duties Calculator
Kenyan excise duties under the Excise Duty Act 2015 (as amended). Levied on alcohol, tobacco, petroleum products, and sugar-sweetened beverages.
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%
📌 Excise Duties in Kenya:
Excise duty is governed by the Excise Duty Act 2015 and amended annually by the Finance Act. Sugar-sweetened beverages attract 10% ad valorem excise (introduced 2023). Petroleum products are subject to specific excise rates plus the Petroleum Development Levy (PDL) and Road Maintenance Levy (RML). VAT at 16% is applied on top of the excise-inclusive price.