Last verified: 16 October 2026. Payroll rules change; confirm current rates with the authority before filing, or let your OurPay specialist do it.
Monthly PAYE bands
| Monthly taxable pay | Rate |
|---|---|
| Up to 24,000 | 10% |
| 24,001 to 32,333 | 25% |
| 32,334 to 500,000 | 30% |
| 500,001 to 800,000 | 32.5% |
| Above 800,000 | 35% |
Resident employees get a personal relief of 2,400 a month, taken off the tax, not off pay. Because 10% of the first 24,000 is exactly 2,400, someone earning up to about 24,000 of taxable pay ends up paying no PAYE.
The order of calculation
- Start with gross pay, including taxable allowances and benefits.
- Deduct NSSF, SHIF and the Affordable Housing Levy to reach taxable pay.
- Apply the bands to taxable pay.
- Subtract personal relief (and insurance relief if it applies).
- The result is PAYE payable. It cannot go below zero.
Worked example: gross pay of 100,000
| NSSF (6%, capped at the 2026 limits) | 6,000 |
| SHIF (2.75%) | 2,750 |
| Housing Levy (1.5%) | 1,500 |
| Taxable pay (100,000 - 10,250) | 89,750 |
| Tax on first 24,000 at 10% | 2,400 |
| Tax on next 8,333 at 25% | 2,083 |
| Tax on remaining 57,417 at 30% | 17,225 |
| Tax before relief | 21,708 |
| Less personal relief | -2,400 |
| PAYE payable | about 19,308 |
Other reliefs
Insurance relief is 15% of qualifying life, health or education premiums, capped at 5,000 a month, and it is applied against the tax like personal relief. Other deductions, such as mortgage interest on an owner-occupied home and approved pension contributions, are subject to their own limits. The full Kenya calculator handles them.
Benefits in kind
Housing, a company car and other non-cash benefits are added to pay before PAYE is calculated, which raises tax without raising net pay. See the calculator for how each benefit is valued.
Filing
PAYE is returned through KRA iTax on the P10 return and paid by the 9th of the following month. Practitioners report a late-payment penalty of 25% of the tax due or a fixed minimum, whichever is higher, plus monthly interest. Confirm current amounts with KRA.
Frequently asked questions
Is PAYE calculated on gross pay?
No. It is calculated on taxable pay, which is gross pay less NSSF, SHIF and the Housing Levy (and other allowed deductions).
Do the bands change every year?
They change when Parliament amends them in a Finance Act. Verify before each financial year. The figures above are the ones in use at the date shown.