How METRIKA calculates this
METRIKA applies Kenya's statutory deductions in the order KRA uses for payroll:
- NSSF at 6% of pensionable pay. Tier I covers the first KES 9,000 (max KES 540). Tier II covers pay from KES 9,001 to the upper earnings limit of KES 108,000 (max KES 5,940). The employee maximum is KES 6,480 a month from 1 February 2026.
- SHIF at 2.75% of gross pay with a KES 300 minimum and no upper cap.
- Affordable Housing Levy at 1.5% of gross pay.
- Taxable pay = gross − NSSF − SHIF − Housing Levy − allowable pension (combined pension cap KES 30,000 a month). NSSF, SHIF and the levy have been deductible before PAYE since the Tax Laws (Amendment) Act, 2024.
- PAYE monthly bands: 10% on the first KES 24,000; 25% on the next KES 8,333; 30% up to KES 500,000; 32.5% up to KES 800,000; 35% above. Personal relief of KES 2,400 is then subtracted.
The Finance Act, 2026 did not change the PAYE bands or personal relief.
What to know in Kenya
Most salaried Kenyans now pay four separate statutory deductions. The 2026 NSSF step-up raised the maximum employee contribution from KES 4,320 to KES 6,480, so anyone earning above KES 72,000 saw a smaller payslip in February 2026 even without a tax change. That extra NSSF is retirement savings in your name, and it lowers your taxable pay.
Not included: insurance relief (15% of qualifying premiums, max KES 5,000 a month), mortgage interest relief, disability exemptions, HELB and SACCO deductions, and taxable benefits such as car or housing benefits. If these apply to you, your payslip will differ.
Frequently asked questions
Is SHIF deducted before PAYE?
Yes. Since December 2024, SHIF contributions reduce taxable pay before PAYE is calculated, as do NSSF and the Housing Levy.
What is the maximum NSSF deduction in 2026?
KES 6,480 a month for employees earning KES 108,000 or more, effective 1 February 2026. Your employer pays a matching amount.
At what salary do I start paying PAYE?
With the KES 2,400 personal relief, PAYE becomes positive once taxable pay passes KES 24,000. After NSSF, SHIF and the levy, that is a gross salary of roughly KES 27,000.
Why did my net pay drop in February 2026?
The NSSF upper earnings limit rose from KES 72,000 to KES 108,000, so contributions rose for anyone earning above KES 72,000.
Does this work for casual or contract workers?
It works for monthly employment income taxed through PAYE. Consultants paid with withholding tax are taxed differently.
Sources
- Kenya Revenue Authority — PAYE
- NSSF Act 2013 — Year 4 rates from 1 Feb 2026 (Grant Thornton Kenya alert)
- Social Health Authority — SHIF contributions
- Affordable Housing Act 2024
Rates checked 26 Sep 2026. METRIKA gives estimates, not financial or tax advice.