Net salary in Kenya

Tax system in Kenya

Kenya taxes employment income through PAYE, with progressive bands from 10% to 35% (the 32.5% and 35% top bands were introduced by the 2023 Finance Act). Chargeable pay is gross salary minus three mandatory employee deductions that are now allowable for tax: NSSF pension (6%, capped at the 108,000 KES/month upper limit), the Social Health Insurance Fund (SHIF) at 2.75% of gross, and the Affordable Housing Levy at 1.5% of gross. A personal relief of KES 28,800 per year is then applied as a credit against the tax due. Nairobi is the regional hub for finance, technology and development organisations, drawing many expatriate professionals.