Kenya PAYE Tax Calculator (Using Rates Effective Dec. 2024)
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Points to Note:
- The old NSSF rates (under the repealed NSSF Act Cap 258) were effective up to the payroll month Jan. 2023. New NSSF rates (under the NSSF Act No. 45 of 2013) took effect from Feb. 2023, after the determination of a court case. Effective 01.02.2024, the NSSF LEL increases from KES. 6,000 to KES 7,000 and the NSSF UEL increases from KES. 18,000 to KES 36,000.
- As at 01.10.2024, the SHIF amount deducted in this computation is based on SHIF rates which took effect from 01.10.2024, at 2.75% of monthly gross pay and subject to a minimum monthly contribution of KES. 300. The previous NHIF rates were effective from 01.04.2015 to 30.09.2024: https://bit.ly/3tdkO9c
- On 19.03.24, the Kenya Affordable Housing Act, 2024 was enacted into law, introducing a Housing Levy, deducted at 1.5% of the employee’s gross monthly pay, with the employer 100% matching the employee’s contribution as part of the total monthly levy contributions, effective the PAYE period March 2024. Tax resident individuals shall be entitled to an affordable housing relief of 15% of their monthly contribution, subject to a cap of KES 9,000 p.m. or KES 108,000 p.a.
- Effective 01.12.24, Reliefs ONLY include a Monthly Personal Relief of Kshs 2,400. The previously applicable SHIF Relief of 15% of an individual’s SHIF contribution, plus the 15% tax relief to Kenyan tax residents who have paid the affordable housing levy, were both repealed by the Kenya Tax Laws (Amendment) Act, 2024.
- Allowable pension contributions other than NSSF (including NSSF contributions other than the statutory amount), mortgage interest on owner-occupier property, insurance relief, deductible contributions to a post-retirement medical fund, contributions to Home Ownership Savings Plans (HOSPs) (defunct as per Kenya Finance Act 2020), amongst others, have particular treatments in this PAYE computation. Feel free to contact us if you have queries on such applicable cases.
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