Understanding your take-home pay in Kenya can be confusing. Between PAYE tax, NSSF, SHIF (formerly NHIF), housing levy, and personal relief, many employees and employers struggle to work out the actual net salary there are not many existing and reliable PAYE Calculators in kenya.
That’s why we built the Skillmind Software PAYE Calculator for Kenya — an accurate, easy-to-use tool that shows exactly how much you’ll take home after every statutory deduction.
👉 Try the PAYE Calculator here
What is PAYE in Kenya?
PAYE (Pay As You Earn) is the tax deducted from employees’ monthly salaries by the employer on behalf of the Kenya Revenue Authority (KRA). It’s a direct income tax applied to anyone earning above the minimum taxable threshold.
Employers are required by law to calculate PAYE correctly, deduct it, and remit it to KRA every month.
How to Calculate PAYE in Kenya (Step by Step)
Here’s how your gross salary is transformed into net pay:
- Gross Salary (basic pay + allowances)
- Subtract NSSF (6% contribution split into Tier I and Tier II)
- Subtract SHIF (2.75% of gross salary)
- Subtract Housing Levy (1.5% of gross pay from employee)
- Arrive at Taxable Income
- Apply PAYE Tax Bands (see table below)
- Subtract Personal Relief (KES 2,400 per month)
- Final Net Salary
PAYE Rates in Kenya (2025)
| Monthly Income (KES) | PAYE Rate |
|---|---|
| Up to 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| 32,334 – 500,000 | 30% |
| 500,001 – 800,000 | 32.5% |
| Above 800,000 | 35% |
Worked Example: PAYE on a Salary of KES 100,000
- Gross Salary: 100,000
- NSSF: 1,080 (Tier I & II)
- SHIF: 2,750 (2.75% of 100,000)
- Housing Levy: 1,500 (1.5% of 100,000)
- Taxable Income: 94,670
PAYE before relief:
- First 24,000 @ 10% = 2,400
- Next 8,333 @ 25% = 2,083
- Remaining 62,337 @ 30% = 18,701
Total PAYE = 23,184
Less Personal Relief = 2,400
PAYE payable = 20,784
👉 Net Pay = 100,000 – (1,080 + 2,750 + 1,500 + 20,784) = 73,886
Other Statutory Deductions in Kenya
- NSSF (National Social Security Fund): 6% contribution, capped by Tier I & II limits.
- SHIF (Social Health Insurance Fund): 2.75% of gross pay, introduced in 2024 to replace NHIF.
- Housing Levy: 1.5% from employees and 1.5% from employers.
- Personal Relief: Flat KES 2,400 per month for all employees.
Why Use Skillmind’s PAYE Calculator Kenya?
✔ Accurate & up-to-date with KRA PAYE bands
✔ Instant gross-to-net and net-to-gross calculations
✔ Includes all statutory deductions: PAYE, NSSF, SHIF, Housing Levy
✔ Saves HR & employees hours of manual work
✔ 100% online, no spreadsheets required
👉 Use the PAYE Calculator Kenya Now
Who Should Use the PAYE Calculator?
- Employees: To know your actual take-home pay.
- Job Seekers: To negotiate salaries confidently.
- Employers/HR Teams: To streamline payroll compliance.
- Freelancers & Consultants: To budget more accurately.
FAQs on PAYE in Kenya
Q1: How does KRA calculate PAYE in Kenya?
KRA applies progressive PAYE tax rates to your taxable income after statutory deductions, then subtracts personal relief.
Q2: What percentage is PAYE in Kenya?
PAYE ranges from 10% to 35%, depending on your monthly income bracket.
Q3: What deductions are made from a salary in Kenya?
Deductions include PAYE, NSSF, SHIF, housing levy, and other company-specific deductions.
Q4: How much is PAYE on a salary of 50,000 in Kenya?
After NSSF, SHIF, and relief, PAYE on KES 50,000 is around KES 5,000–6,000, depending on allowances.
Q5: Is PAYE the same as income tax?
Yes. PAYE is the system through which KRA collects income tax directly from employees’ salaries.
Conclusion: Salary Clarity with Skillmind Software
Calculating PAYE in Kenya doesn’t need to be complex. With the Skillmind PAYE Calculator, you get instant clarity on your deductions and final net pay. Whether you’re an employee, HR manager, or freelancer — this tool is built to make your financial planning smarter.
