Payroll in Kenya: rates, calculators and deadlines (2026)
Quick answer
Kenyan payroll in 2026 deducts four statutory amounts from gross pay: PAYE in bands from 10% to 35% less KES 2,400 monthly relief, SHIF at 2.75% of gross (minimum KES 300), NSSF at 6% of pensionable pay up to KES 108,000 under the February 2026 limits, and the Affordable Housing Levy at 1.5% of gross. All four are due by the 9th of the following month. NSSF and the levy are matched by the employer.
Payroll is where compliance meets cash flow. Get a deduction wrong and you either over-deduct your team or invite penalties; miss the 9th-of-the-month deadline and interest starts accruing. This page keeps the current rates, free calculators, templates and deadlines in one place, updated when the law changes.
The February 2026 NSSF change is the one most payrolls have not caught up with: the ceiling moved from KES 72,000 to KES 108,000, which raises the maximum employee deduction from KES 4,320 to KES 6,480. If your payroll still deducts on the old limits, higher earners are under-contributing.
2026 statutory rates at a glance
| Deduction | Rate | Charged on | Employer share |
|---|---|---|---|
| PAYE | 10% to 35% in bands, less KES 2,400 monthly relief | Taxable pay (after NSSF, SHIF and AHL) | None |
| SHIF | 2.75% (minimum KES 300) | Gross pay | None (employer remits) |
| NSSF | 6%, maximum KES 6,480 from February 2026 | Pensionable pay up to KES 108,000 | Matches employee 6% |
| Housing Levy | 1.5% | Gross pay | Matches employee 1.5% |
All four remittances are due by the 9th of the month following the payroll month.
Free payroll calculators
PAYE calculator
KRA bands 10% to 35% with KES 2,400 relief.
Net salary calculator
Gross to net with all four statutory deductions.
NSSF calculator
New February 2026 rates, Tier I and Tier II.
SHIF calculator
2.75% of gross, minimum KES 300. Replaced NHIF.
Overtime calculator
1.5x weekdays, 2x rest days and holidays.
Staff cost calculator
The true monthly cost of a hire, employer share included.
Leave days calculator
Pro-rata annual leave under the Employment Act.
Commission calculator
Flat and tiered commission plans.
Templates and further reading
Frequently asked questions
What are the statutory payroll deductions in Kenya in 2026?
What changed in NSSF from February 2026?
When are payroll deductions due?
Do casual workers pay PAYE and SHIF?
Is SHIF the same as NHIF?
Which deductions reduce PAYE-taxable pay?
Sources and methodology
Rates on this page were verified in July 2026 against the individual income tax schedule introduced by the Finance Act 2023 (PAYE bands and personal relief), the Social Health Insurance (General) Regulations 2024 (SHIF), the NSSF Act 2013 Third Schedule Phase 4 implementation effective February 2026 (NSSF limits), and the Affordable Housing Act 2024 (levy). Calculators show statutory minimums; contracts and approved schemes can provide more. Last updated 2026-07-06.
Veira runs payroll with your POS: PAYE, SHIF, NSSF and the Housing Levy computed every cycle, with iTax-ready files.