Your Kenyan payslip explained: PAYE, NSSF, SHIF and the Housing Levy

Your offer letter shows one number and your bank account shows another. The difference is a set of deductions, most of them required by law. This guide walks through each line of a typical Kenyan payslip using the rates in force from February 2026.

Earnings: from basic pay to gross pay

• Basic salary. Your contractual monthly pay before allowances.
• Allowances. House, transport, commuter, airtime or hardship allowances. Most cash allowances are taxable and count towards gross pay.
• Overtime, commission and bonuses. Also taxable in the month they are paid.
• Gross pay. The total of everything above. Statutory deductions are calculated from this figure.

Statutory deductions

NSSF (National Social Security Fund)

A pension contribution of 6% of pensionable pay, split into two tiers. Tier I is 6% of the first KES 9,000. Tier II is 6% of pay between KES 9,000 and KES 108,000. The maximum employee contribution is therefore KES 6,480 a month, and your employer pays the same amount on top. NSSF limits have been rising in steps since 2024, so check your payslip when a new year's limits take effect.

SHIF (Social Health Insurance Fund)

SHIF replaced NHIF in October 2024 and is run by the Social Health Authority (SHA). Employees pay 2.75% of gross pay, with a minimum of KES 300 and no upper cap. Unlike the old NHIF bands, a higher salary means a higher contribution.

Affordable Housing Levy

Employees pay 1.5% of gross pay and employers pay a matching 1.5%. There is no cap.

PAYE (Pay As You Earn)

Income tax deducted by your employer and paid to KRA. Since 27 December 2024, NSSF, SHIF and the Housing Levy are all deducted from gross pay before PAYE is calculated, which lowers your tax slightly. PAYE is then charged on the remaining taxable pay in bands:

Every resident employee then gets personal relief of KES 2,400 a month, taken off the tax. In practice, if your taxable pay is KES 24,000 or less, your PAYE is zero.

A full example: KES 100,000 gross

Try your own salary in the take-home pay calculator.

Reliefs that can lower your PAYE

• Insurance relief. 15% of premiums on qualifying life, education or health policies, up to KES 5,000 a month. Give your employer the policy details so they can apply it.
• Registered pension contributions. Contributions to a registered pension scheme, including NSSF, are deductible up to a monthly limit.
• Disability exemption. Registered persons with disabilities can apply to KRA for an exemption on a portion of their income.

Other deductions you may see

These are not statutory but are common: HELB loan repayments, SACCO savings and loans, union dues, staff welfare contributions, salary advances and bank loan check-offs. Each should be backed by an agreement or court order. If you see a deduction you do not recognise, ask payroll in writing.

Your P9 form and tax return

Each year your employer should give you a P9 form showing your annual pay and tax. Use it to file your income tax return on iTax by 30 June. Filing is required even if your employer already deducted all your tax, and late filing attracts a penalty.

Rates change through Finance Acts and NSSF schedules. This guide reflects the rates in force from February 2026. Always check your payslip and KRA's official notices if something looks different.