How Kenya Income Tax (PAYE) Works in 2026Kenya operates a Pay As You Earn (PAYE) system with 7 progressive tax brackets ranging from 10% to 35%. The system includes a tax-free threshold of KES 288,000 annually, meaning income up to this amount is taxed at the lowest 10% rate.Key components of Kenya's tax system:PAYE (Income Tax): 10-35% progressive rates based on annual incomePersonal Relief: KES 2,400 per month (KES 28,800/year) - deducted from tax owed, not incomeSHIF (Social Health Insurance Fund): 2.75% of gross salary - replaced NHIF in 2024Housing Levy: 1.5% of gross salary - mandatory since July 2023NSSF (National Social Security Fund): Tiered contributions up to KES 2,160/monthMajor 2024-2026 changes:NHIF abolished and replaced by SHIF at 2.75% (previously NHIF was flat rate)Housing Levy introduced at 1.5% (controversial but now mandatory)Digital Nomad Work Permit announced October 2024 ($55,000/year income requirement)Who pays tax in Kenya: All residents earning income in Kenya, plus non-residents earning Kenya-source income. Tax year runs January 1 - December 31.Official source: Kenya Revenue Authority (KRA) and PWC Kenya Tax Summary.
This hub links to every Kenya tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.
Detailed Kenya tax guides on CountryTaxCalc:
Kenya's income tax uses 5 PAYE brackets (10-35%) effective July 2023. SHIF 2.75% + Housing Levy 1.5% employee. KES 2,400/month personal relief (tax credit).. Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| KES 0 - 288,000 | 10% |
| KES 288,001 - 388,000 | 25% |
| KES 388,001 - 6,000,000 | 30% |
| KES 6,000,001 - 9,600,000 | 32.5% |
| Above KES 9,600,000 | 35% |
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