Net Salary Calculator Kenya (2026)
Calculate your exact take-home pay with updated 2026 rates. Includes PAYE, SHIF (replaced NHIF), NSSF, and Housing Levy deductions.
Salary Details
Reduces taxable income: KRA allows up to KES 30,000/mo, NSSF included
Monthly Salary Breakdown
Net Salary (Take Home)
Ksh 83,511
Effective tax rate: 20.8%
Gross Salary
Ksh 120,000
Total Deductions
Ksh 36,489
Deduction Rate
30.4%
Salary Distribution
| Item | Amount (KES) |
|---|---|
| Gross Salary | Ksh 120,000 |
| Less: NSSF Tier I | (Ksh 540) |
| Less: NSSF Tier II | (Ksh 5,940) |
| Taxable Income | Ksh 108,420 |
| Gross Tax (PAYE) | Ksh 27,309 |
| Less: Personal Relief | (Ksh 2,400) |
| Net PAYE Payable | Ksh 24,909 |
| NSSF (Tier I + II) | Ksh 6,480 |
| SHIF (2.75%) | Ksh 3,300 |
| Housing Levy / AHL (1.5%) | Ksh 1,800 |
| Total Deductions | Ksh 36,489 |
| Net Salary (Take Home) | Ksh 83,511 |
How PAYE Is Calculated in Kenya (2026)
Pay-As-You-Earn (PAYE) is calculated on your taxable income using progressive tax bands. Taxable income equals gross salary minus NSSF and other pension contributions (up to KES 30,000 a month together), SHIF and the housing levy (Tax Laws (Amendment) Act, 2024, from 27 December 2024).
Rules checked on 2026-11-13 against KRA: Pay As You Earn (PAYE); KRA: Amendments to PAYE computation (Tax Laws (Amendment) Act, 2024); KRA: Insurance relief and SHIF contributions; NSSF: Notice to employers, Year 4 (2026) contribution rates.
| Monthly Taxable Income (KES) | Tax Rate |
|---|---|
| 0 – 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| 32,334 – 500,000 | 30% |
| 500,001 – 800,000 | 32.5% |
| Above 800,000 | 35% |
After calculating gross tax, personal relief (KES 2,400/month) is subtracted. The resulting figure is your net PAYE payable. Insurance relief does not apply to SHIF contributions.
Understanding Each Deduction
SHIF (Social Health Insurance Fund)
SHIF replaced NHIF under the Social Health Insurance Act. The rate is 2.75% of gross salary, and the contribution is deducted before PAYE is worked out.
NSSF (National Social Security Fund)
From February 2026 (Year 4 of the NSSF Act), Tier I is 6% of pay up to KES 9,000 (KES 540) and Tier II is 6% of pay from there to KES 108,000 (up to KES 5,940). The employer pays the same again. The most an employee pays is KES 6,480 a month.
Housing Levy (Affordable Housing Levy / AHL)
The Affordable Housing Levy is 1.5% of gross salary, matched by the employer at 1.5%, under the Affordable Housing Act, 2024. It is deducted before PAYE is worked out.
Insurance Relief
KRA has confirmed that insurance relief does not apply to SHIF contributions; SHIF is deducted from taxable income instead. Relief of 15% of premiums (up to KES 60,000 a year) still applies to qualifying life, health and education policies, which this calculator does not include.
Disability Exemption
Persons with disability who hold a valid NCPWD certificate enjoy a monthly tax exemption on the first KES 150,000 of taxable income. This can significantly reduce PAYE for qualifying individuals.
What Changed in 2025/2026
Frequently Asked Questions
What is the difference between SHIF and NHIF?
SHIF (Social Health Insurance Fund) replaced NHIF in October 2024. The key difference is the calculation method: NHIF used graduated bands based on income brackets, while SHIF charges a flat 2.75% of gross salary. SHIF is managed by the Social Health Authority (SHA) and aims to provide universal health coverage.
How much NSSF should I pay?
You pay 6% of pensionable earnings. From February 2026, Tier I covers the first KES 9,000 (KES 540/month) and Tier II covers pay from there to KES 108,000 (up to KES 5,940/month). Your employer matches your contribution.
Is the Housing Levy mandatory?
Yes. The Affordable Housing Levy (AHL) at 1.5% of gross salary is mandatory for all employees in Kenya under the Affordable Housing Act, 2024. Your employer also contributes 1.5%. The levy is deducted before PAYE is worked out.
Can I reduce my PAYE tax?
Yes. Contributions to a registered pension scheme, NSSF included, reduce your taxable income (up to KES 30,000/month). SHIF and the housing levy are also deducted before tax, and personal relief (KES 2,400/month) is deducted from your gross tax. If you have a disability certificate, the first KES 150,000 of your monthly taxable income is exempt from tax.