Kenya Payroll Statistics
Running payroll in Kenya means getting both the numbers and the statutory rates right, and most sources mix the two up or skip the source. Here are the formal wage and employment figures from KNBS, and the statutory deduction rates from KRA, each cited so you can rely on them.
Last updated 13 June 2026. Every figure is cited to a primary source below.
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What an employer actually deducts
Gross pay is not take-home. On top of PAYE, which is graduated up to a top rate of 35 percent, an employer deducts SHIF at 2.75 percent of gross pay, the Affordable Housing Levy at 1.5 percent (matched by the employer), and NSSF contributions on pensionable pay up to a statutory ceiling. Getting these right every month is the core of compliant payroll.
The scale is large: the private sector wage bill reached KES 2,117.4 billion in 2024 according to KNBS, across about 3.4 million formal workers. Confirm the current rates and NSSF ceiling with KRA and the relevant bodies, as they are periodically revised.
Frequently asked questions
An employer deducts PAYE (graduated, up to a top rate of 35 percent), SHIF at 2.75 percent of gross pay, the Affordable Housing Levy at 1.5 percent of gross (matched by the employer), and NSSF contributions on pensionable pay up to a statutory ceiling. Confirm current rates with KRA.
The Social Health Insurance Fund (SHIF) deduction is 2.75 percent of an employee's gross salary. It replaced NHIF. Confirm the current rate with the Social Health Authority or KRA.
The Affordable Housing Levy is 1.5 percent of an employee's gross monthly salary, matched by an equal 1.5 percent from the employer, giving a combined 3 percent. It is administered through KRA.
According to the KNBS 2025 Economic Survey, the private sector wage bill was KES 2,117.4 billion in 2024, with roughly 3.4 million workers in formal wage employment. The public sector wage bill was KES 881.4 billion.
The KNBS 2025 Economic Survey reported about 3.4 million workers in formal (wage) employment in 2024, which was around 16.4 percent of total employment. Most employment in Kenya remains informal.
The wage bill and employment figures come from the KNBS 2025 Economic Survey. The statutory deduction rates come from KRA and the relevant statutes. Confirm rates with KRA before relying on them, as they change.
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