Net Salary Calculator
Kenya 2026
Kenya's most accurate take-home pay calculator — incorporating NSSF Phase 4 tiers (effective 1 Feb 2026), SHIF 2.75%, Affordable Housing Levy (1.5%), and the corrected allowable deduction treatment for both AHL and SHIF under the Tax Laws (Amendment) Act 2024.
Expert verified by Patrick Buyela, Payroll Specialist · Updated March 2026
How to Calculate Your Net Salary in Kenya (2026)
Your net salary — also called take-home pay — is what remains after all statutory deductions are subtracted from your gross monthly earnings. In 2026, the calculation involves four mandatory deductions: NSSF Phase 4, SHIF, Affordable Housing Levy (AHL), and PAYE income tax, calculated in a specific legal sequence defined by the Finance Act and KRA guidelines.
A critical update that many calculators still get wrong: as of 27 December 2024, the Tax Laws (Amendment) Act 2024 amended Section 15(2) of the Income Tax Act, making the Affordable Housing Levy an allowable deduction for PAYE — meaning AHL now reduces your taxable income before PAYE is computed, alongside SHIF and NSSF. Our calculator correctly reflects this.
The Legal Calculation Order
KES 540.Tier II: 6% of earnings between KES 9,000 and KES 108,000 = max
KES 5,940.Maximum employee NSSF =
KES 6,480 (effective 1 February 2026).KES 300 per month. No upper cap. SHIF is an allowable deduction for PAYE (reduces taxable income).KES 30,000 combined per month, further reducing your taxable income.Taxable Income = Gross − NSSF − SHIF − AHL − Pension. Apply the 2026 KRA progressive PAYE bands to this figure to compute gross tax.Net Pay = Gross − NSSF − SHIF − AHL − PAYE − (HELB/SACCO if applicable). Note: HELB and SACCO contributions are post-tax and do not reduce taxable income.2026 KRA PAYE Tax Bands — Monthly
The Kenya Revenue Authority applies progressive tax rates to taxable monthly income (after allowable deductions). Personal Relief of KES 2,400 per month is applied as a credit against the resulting gross tax.
| Monthly Taxable Income (KES) | Tax Rate | Tax on Band | Cumulative Tax |
|---|---|---|---|
| 0 – 24,000 | 10% | Up to KES 2,400 | KES 2,400 |
| 24,001 – 32,333 | 25% | Up to KES 2,083 | KES 4,483 |
| 32,334 – 500,000 | 30% | Up to KES 140,300 | KES 144,783 |
| 500,001 – 800,000 | 32.5% | Up to KES 97,500 | KES 242,283 |
| Above 800,000 | 35% | Unlimited | — |
Note: Personal Relief (KES 2,400/month) is subtracted from gross tax after the bands are applied, not from income. Individuals whose taxable income falls entirely in the 10% band (≤ KES 24,000) pay zero PAYE because the relief equals or exceeds the tax due.
NSSF Phase 4 Contribution Limits — February 2026
Effective 1 February 2026, the NSSF Lower Earnings Limit (LEL) rose to KES 9,000 and the Upper Earnings Limit (UEL) rose to KES 108,000. Contributions are shared equally between employee and employer.
Worked Example: KES 120,000 Gross Salary
Below is a complete payslip calculation for an employee earning a gross monthly salary of KES 120,000, with no pension beyond NSSF and no insurance premium.
Sample Payslip — March 2026
Gross: KES 120,000Effective deduction rate: 30.4% of gross. Employer also pays NSSF KES 6,480, AHL KES 1,800, and NITA KES 50, bringing total employer cost to ~KES 134,330.
Net Salary Calculator
Kenya
Frequently Asked Questions
Everything you need to know about calculating net salary in Kenya for the 2026 financial year.
Yes — effective 27 December 2024. The Tax Laws (Amendment) Act 2024 amended Section 15(2) of the Income Tax Act to include AHL as an allowable deduction. Your 1.5% Housing Levy contribution now reduces your taxable income before PAYE is calculated. Note: the previously applicable 15% AHL tax relief was simultaneously repealed — only the deduction treatment remains.
Effective 1 February 2026:
- Lower Earnings Limit (LEL): KES 9,000 (up from KES 8,000)
- Upper Earnings Limit (UEL): KES 108,000 (up from KES 72,000)
- Tier I employee: 6% × KES 9,000 = KES 540
- Tier II employee: 6% × (gross − 9,000), capped at KES 5,940
- Maximum total employee deduction: KES 6,480
Employer contributions mirror employee contributions at each tier.
The zero-PAYE threshold applies to taxable income of KES 24,000 or less, not to gross salary. Because NSSF, SHIF, and AHL are all allowable deductions, the equivalent gross salary is higher — approximately KES 25,500–27,000 for a typical employee. Use the calculator above to find the precise figure for your salary structure.
Yes. SHIF contributions at 2.75% of gross salary are treated as allowable deductions under Kenya tax law. They reduce your gross income before PAYE bands are applied. The minimum SHIF contribution is KES 300 per month. There is no cap.
Insurance relief is a tax credit equal to 15% of qualifying life insurance premiums paid in a month, up to a maximum of KES 5,000 per month. It is subtracted from your computed gross tax, reducing your final PAYE payable. To get the maximum relief, you would need to pay at least KES 33,333 per month in qualifying premiums.
Yes. Contributions to a KRA-registered pension fund beyond the statutory NSSF amount are allowable deductions, up to a combined limit of KES 30,000 per month (inclusive of NSSF). Note that the total NSSF deduction (up to KES 6,480) counts toward the KES 30,000 cap.
No. HELB repayments are a post-tax deduction — they are subtracted from your net pay after PAYE has been computed and do not reduce your taxable income. SACCO deductions are similarly post-tax.
Overtime earnings are included in your gross cash income and taxed under the same progressive KRA PAYE bands as basic salary. There is no separate or reduced rate for overtime. If overtime pushes your income into a higher PAYE band, the excess is taxed at that higher rate.
No. Each Kenyan resident taxpayer is entitled to a single Personal Relief of KES 2,400 per month (KES 28,800 per year). If you are employed by multiple employers simultaneously, only one employer may apply this relief to avoid underpaying KRA.
Beyond your gross salary, your employer bears:
- NSSF employer match: equal to employee contribution (max KES 6,480/month)
- Affordable Housing Levy: 1.5% of gross (employer matches employee contribution)
- NITA levy: KES 50 per employee per month
For a KES 120,000 gross employee, total employer cost is approximately KES 134,330 per month. Use our Employer Cost Calculator for full TCOE modelling.
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