Payroll: PAYE, NSSF, SHIF, Housing Levy
Every employer in Kenya runs a four-stack payroll. Miss one and the penalties stack fast.
PAYE bands (2025)
| Annual income (KES) | Rate |
|---|---|
| 0 – 288,000 | 10% |
| 288,001 – 388,000 | 25% |
| 388,001 – 6,000,000 | 30% |
| 6,000,001 – 9,600,000 | 32.5% |
| 9,600,001+ | 35% |
Apply the personal relief of KES 2,400/month to every employee. Insurance, mortgage, and pension reliefs further reduce the taxable amount.
NSSF
Tier I: 6% of first KES 8,000 (max KES 480) employee + matched 6% employer. Tier II: 6% of next KES 64,000 (max KES 3,840). Total max employer + employee = KES 8,640/month.
SHIF
2.75% of gross salary, minimum KES 300. Both deducted from employee and remitted by employer.
Affordable Housing Levy
1.5% employee + 1.5% employer. Remit alongside PAYE by the 9th.
PAYE, NSSF, SHIF, and Housing Levy are all due on the 9th. Set up payroll software (PaySpace, Workpay, Sage) so you generate all four returns in one click — manual processing is where errors creep in.
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
