Enter a gross monthly salary to see PAYE, SHIF, NSSF and the Affordable Housing Levy — and the exact net pay your employee takes home. Free, instant, and no sign-up.
Figures update as you type. This tool gives estimates for a resident employee on the 2026 statutory rates — always confirm final figures against your payroll before filing.
Kenyan payroll applies four statutory deductions in a set order. Here is exactly how this calculator works them out — the same logic Yolaworks payroll uses each month.
The National Social Security Fund takes 6% of pensionable pay across Tier I and Tier II, capped at an upper earnings limit of KES 72,000. That means the maximum employee NSSF deduction is KES 4,320 a month. Your employer contributes a matching amount on top.
The Social Health Insurance Fund replaced NHIF and is charged at 2.75% of gross monthly pay, with a minimum of KES 300. Unlike the old NHIF band table, SHIF is a straight percentage, so it rises with salary.
The Housing Levy deducts 1.5% of gross pay from the employee, with the employer contributing a matching 1.5%. It applies to all employees regardless of salary.
PAYE is charged on taxable pay, which is gross pay minus NSSF, SHIF and the Housing Levy (these are allowable deductions). The 2026 graduated bands are:
| Monthly taxable pay (KES) | Rate |
|---|---|
| On the first 24,000 | 10% |
| On the next 8,333 (up to 32,333) | 25% |
| On the next 467,667 (up to 500,000) | 30% |
| On the next 300,000 (up to 800,000) | 32.5% |
| Above 800,000 | 35% |
After the banded tax is worked out, a personal relief of KES 2,400 per month is subtracted. The result is your PAYE.
Net pay = gross pay − PAYE − SHIF − NSSF − Housing Levy. That is the figure your employee actually receives, and what Yolaworks sends out as an M-PESA or bank payment file.
Kenya's statutory payroll rates, current for 2026.
Tier I & II, capped at KES 72,000 pensionable pay — max KES 4,320.
Of gross pay, minimum KES 300. Replaced NHIF.
Of gross pay, matched by the employer.
Graduated bands on taxable pay, less KES 2,400 relief.
Yolaworks computes PAYE, SHIF, NSSF and the Housing Levy for your whole team, generates payslips and KRA-ready reports, and pays staff by M-PESA or bank file — every cycle.
Start your 30-day free trial No payment needed · Full access to all six apps · Your data is always yoursCommon questions about Kenyan payroll deductions in 2026.
PAYE is charged on taxable pay — gross pay less NSSF, SHIF and the Housing Levy — using graduated bands: 10% on the first KES 24,000, 25% on the next KES 8,333, 30% on the next KES 467,667, 32.5% on the next KES 300,000 and 35% above KES 800,000. A personal relief of KES 2,400 per month is then subtracted.
SHIF — the Social Health Insurance Fund that replaced NHIF — is 2.75% of gross monthly pay, with a minimum contribution of KES 300.
NSSF Tier I and Tier II total 6% of pensionable pay up to an upper limit of KES 72,000, giving a maximum employee contribution of KES 4,320 per month. The employer matches it.
The Housing Levy is 1.5% of gross monthly pay deducted from the employee, with the employer contributing a matching 1.5%. It applies to all employees.
Yes — completely free, no sign-up. For running full payroll, producing payslips and filing PAYE, SHIF and NSSF, Yolaworks offers a 30-day free trial with no payment needed.
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