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 (max KES 20,000/mo allowed by KRA)
Monthly Salary Breakdown
Net Salary (Take Home)
Ksh 85,500
Effective tax rate: 22.7%
Gross Salary
Ksh 120,000
Total Deductions
Ksh 34,500
Deduction Rate
28.8%
Salary Distribution
| Item | Amount (KES) |
|---|---|
| Gross Salary | Ksh 120,000 |
| Less: NSSF Tier I | (Ksh 420) |
| Less: NSSF Tier II | (Ksh 1,740) |
| Taxable Income | Ksh 117,840 |
| Gross Tax (PAYE) | Ksh 30,135 |
| Less: Personal Relief | (Ksh 2,400) |
| Less: Insurance Relief | (Ksh 495) |
| Net PAYE Payable | Ksh 27,240 |
| NSSF (Tier I + II) | Ksh 2,160 |
| SHIF (2.75%) | Ksh 3,300 |
| Housing Levy / AHL (1.5%) | Ksh 1,800 |
| Total Deductions | Ksh 34,500 |
| Net Salary (Take Home) | Ksh 85,500 |
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 contributions and any allowable pension contributions.
| 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, reliefs are subtracted: Personal Relief (KES 2,400/month) and Insurance Relief (15% of SHIF contribution, capped at KES 5,000/month). The resulting figure is your net PAYE payable.
Understanding Each Deduction
SHIF (Social Health Insurance Fund)
SHIF replaced NHIF in October 2024. The new rate is a flat 2.75% of gross salary, replacing the old graduated NHIF bands. This is a mandatory deduction for all employed Kenyans. Many competing calculators still use the outdated NHIF rates.
NSSF (National Social Security Fund)
NSSF has two tiers: Tier I covers the first KES 7,000 of gross salary at 6% (max KES 420/month). Tier II covers KES 7,001 to KES 36,000 at 6% (max KES 1,740/month). Both employee and employer contribute equal amounts. Total maximum employee contribution is KES 2,160/month.
Housing Levy (Affordable Housing Levy / AHL)
The Affordable Housing Levy is 1.5% of gross salary, matched by the employer at 1.5%. It was upheld by the Supreme Court in 2024 and is now a mandatory deduction.
Insurance Relief
You receive tax relief equal to 15% of your SHIF contribution, capped at KES 5,000 per month. This reduces your PAYE payable. It applies automatically when you contribute to SHIF.
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?
Under the new NSSF Act, you pay 6% of pensionable earnings. Tier I covers the first KES 7,000 (max KES 420/month) and Tier II covers KES 7,001 to KES 36,000 (max KES 1,740/month). Your employer matches your contribution. Some employers still apply only Tier I pending full implementation.
Is the Housing Levy mandatory?
Yes. The Affordable Housing Levy (AHL) at 1.5% of gross salary is mandatory for all employees in Kenya. Your employer also contributes 1.5%. The Supreme Court of Kenya upheld the levy in 2024.
Can I reduce my PAYE tax?
Yes. Contributing to a registered pension scheme reduces your taxable income (up to KES 20,000/month). Insurance relief (15% of SHIF contribution) and personal relief (KES 2,400/month) are also 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.