Kenya PAYE tax bands 2026: monthly rates, relief and an example
Employers in Kenya hold back income tax from each salary and pay it to the Kenya Revenue Authority (KRA) as Pay As You Earn, or PAYE. The monthly bands have applied since 1 July 2023. This guide sets them out, shows how the personal relief works, and goes through a monthly salary of KSh 100,000.
The monthly bands
There are 5 bands. Each band taxes only the part of pay that falls inside it. The last column shows the tax on everything below the start of the band, so that the tax on any taxable pay is the figure in the last column plus the rate times the part above the start.
| Taxable pay a month from | Up to | Width of the band | Rate | Tax before relief at the start |
|---|---|---|---|---|
| KSh 0 | KSh 24,000 | KSh 24,000 | 10% | KSh 0.00 |
| KSh 24,000 | KSh 32,333 | KSh 8,333 | 25% | KSh 2,400.00 |
| KSh 32,333 | KSh 500,000 | KSh 467,667 | 30% | KSh 4,483.25 |
| KSh 500,000 | KSh 800,000 | KSh 300,000 | 32.5% | KSh 144,783.35 |
| KSh 800,000 | and above | the rest | 35% | KSh 242,283.35 |
The first KSh 24,000 of taxable pay is taxed at 10%, which is KSh 2,400.00. The next KSh 8,333 is taxed at 25%, so the tax at KSh 32,333 is KSh 4,483.25. The top rate of 35% starts above KSh 800,000 a month.
Personal relief
Every resident employee gets a personal relief of KSh 2,400 a month. It is taken off the tax worked out from the bands, not off pay, and PAYE cannot go below nil. Because the first KSh 24,000 of taxable pay carries exactly KSh 2,400.00 of tax, the relief wipes out the tax on taxable pay up to KSh 24,000. The KRA also gives insurance relief of 15% of life or health insurance premiums, up to KSh 60,000 a year. The calculators do not include it, because it needs the premium you pay.
Taxable pay is not gross pay
The bands are applied to gross pay less the employee's NSSF, SHIF and Affordable Housing Levy contributions. See the guide to those deductions. For that reason the salary at which PAYE begins is higher than KSh 24,000: a monthly salary of KSh 26,740 or less has no PAYE, and the next shilling starts to be taxed at 25%.
A worked example
Take a monthly salary of KSh 100,000. The three deductions come off first, the bands are applied to what is left, and then the relief is subtracted:
| Step, for one month | Amount |
|---|---|
| Gross monthly pay | KSh 100,000.00 |
| Less NSSF (employee) | KSh 6,000.00 |
| Less SHIF (employee) | KSh 2,750.00 |
| Less Housing Levy (employee) | KSh 1,500.00 |
| Taxable pay | KSh 89,750.00 |
| Tax before relief | KSh 21,708.35 |
| Less personal relief | KSh 2,400.00 |
| PAYE to pay | KSh 19,308.35 |
| Net pay | KSh 70,441.65 |
The taxable pay of KSh 89,750.00 runs into the 30% band. The tax before relief of KSh 21,708.35 is the fixed KSh 4,483.25 at the start of that band plus 30% of the KSh 57,417.00 above KSh 32,333. The same result comes from adding the slices of each band:
| Band of taxable pay | Amount in the band | Rate | Tax |
|---|---|---|---|
| KSh 0 to KSh 24,000 | KSh 24,000.00 | 10% | KSh 2,400.00 |
| KSh 24,000 to KSh 32,333 | KSh 8,333.00 | 25% | KSh 2,083.25 |
| KSh 32,333 to KSh 89,750 | KSh 57,417.00 | 30% | KSh 17,225.10 |
| Tax before relief | KSh 89,750.00 | KSh 21,708.35 |
After the relief of KSh 2,400.00, PAYE is KSh 19,308.35, which is 19.31% of the gross salary, although the last shilling earned is taxed at 30%. Add the three deductions and the total taken from the salary is KSh 29,558.35, which leaves KSh 70,441.65 a month.
High salaries
The 32.5% band starts at KSh 500,000 of taxable pay and the 35% band at KSh 800,000. At a gross salary of KSh 1,000,000 a month the taxable pay is KSh 951,020.00 and PAYE is KSh 292,740.35, or 29.27% of gross. NSSF is at its KSh 6,480.00 maximum there, while SHIF and the levy keep rising with pay.
Not included: benefits in kind, allowances, bonuses, overtime, pension or mortgage-interest deductions, insurance relief and non-resident rates. The bands and the relief were read on the KRA page, and the NSSF treatment before PAYE was read on payroll guides, as the Sources and rates page states.
Work out your own net paySources
- KRA: PAYE page, monthly bands, personal relief and allowed deductions
- KRA: Kenya Revenue Authority
- NSSF: notice to employers, Year 4 contribution rates (contributions deducted before tax)
- Social Health Authority: SHIF premium rates
- Every rate used, with its source and check date: Sources and rates
This calculator is general information only. It uses the official pages listed on the Sources page, and your payslip and personal situation may differ. Rates as at 2 November 2026.