Kenya Payslip Explained 2026: PAYE, NSSF, SHIF and the Housing Levy
A Kenya payslip shows four main deductions: PAYE, NSSF, SHIF and the Housing Levy. Together they decide your take-home pay.
Most people never check the maths. That makes mistakes hard to spot.
This guide explains each line, with a worked example you can follow.
Quick answer
- NSSF is 6% of pay up to KES 108,000, a maximum of KES 6,480.
- SHIF is 2.75% of gross pay, with a minimum of KES 300.
- The Housing Levy is 1.5% of gross pay.
- PAYE uses bands of 10%, 25%, 30%, 32.5% and 35%, less a KES 2,400 monthly personal relief.
NSSF (Pension)
NSSF Phase 4 has applied since February 2026, with employee and employer each paying 6%. Your employer matches your contribution.
SHIF (Health)
SHIF replaced NHIF. It is 2.75% of gross pay with no upper cap. See our guide on NHIF vs SHA.
Affordable Housing Levy
The employee pays 1.5% of gross pay, and the employer matches it. See our housing levy guide.
PAYE (Income Tax)
NSSF, SHIF and the employee’s Housing Levy are deducted from gross pay before PAYE is calculated. The Finance Act 2026 made no change to PAYE bands.
The monthly bands are generally:
| Taxable pay per month | Rate |
|---|---|
| First KES 24,000 | 10% |
| Next KES 8,333 | 25% |
| Next KES 467,667 (to KES 500,000) | 30% |
| KES 500,001 to 800,000 | 32.5% |
| Above KES 800,000 | 35% |
Confirm the band limits on KRA’s website before publishing.
Worked Example: KES 80,000 Gross Pay (Illustrative)
| Step | Calculation | Amount |
|---|---|---|
| NSSF | 6% of 80,000 | KES 4,800 |
| SHIF | 2.75% of 80,000 | KES 2,200 |
| Housing Levy | 1.5% of 80,000 | KES 1,200 |
| Total deductions before PAYE | KES 8,200 | |
| Taxable pay | 80,000 − 8,200 | KES 71,800 |
| Tax before relief | 2,400 + 2,083 + 11,840 | about KES 16,323 |
| Personal relief | −KES 2,400 | |
| PAYE | about KES 13,923 | |
| Net pay | about KES 57,877 |
Your own payslip may differ because of allowances, pension, insurance and benefits.
What Your Employer Pays on Top
Your employer matches your NSSF contribution and pays a matching 1.5% Housing Levy. These don’t reduce your pay.
6 Payslip Checks
- Is your gross pay correct?
- Is NSSF 6%, capped at KES 6,480?
- Is SHIF 2.75%?
- Is the Housing Levy 1.5%?
- Is PAYE calculated on taxable pay, not gross? Payrolls still computing PAYE on gross pay overstate tax.
- Is the KES 2,400 relief applied?
If something looks wrong, ask your HR or payroll department in writing.
Frequently Asked Questions
Is SHIF deducted before PAYE?
Since 27 December 2024, SHIF contributions are deducted from employment income before PAYE is calculated.
What is the NSSF maximum in 2026?
KES 6,480 per month for the employee.
Did PAYE bands change in 2026?
The Finance Act 2026 made no change to the bands.
Where can I read more?
See our guide to Kenya income tax and the Finance Act 2026 changes.
Rates change. Confirm on KRA’s website or with your payroll team. The example is illustrative. This article is for information only.
