Tax and money

How is PAYE calculated in Kenya?

Updated June 2026

Short answer

PAYE is charged on an employee gross pay using KRA graduated tax bands, after allowable reliefs and deductions such as SHIF and NSSF. The free PAYE calculator applies the current bands and reliefs so you get the right net pay without doing the maths by hand.

More detail

The detail that trips people up is order: statutory deductions and reliefs come into the calculation before and after tax in specific ways, so a flat percentage gives the wrong answer.

For payroll, use a calculator that is kept current with the bands and the latest SHIF and NSSF rates, then keep a clear record of each payslip.

Related questions

What is deducted from gross salary in Kenya?
Typically PAYE, SHIF and NSSF, and any agreed items such as a loan or pension. The net salary calculator shows the take-home after all of them.

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