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2026 KRA rates, instant
When you work only part of a month, first establish the pay earned for that period, then calculate PAYE on the resulting taxable pay. Dividing a normal month’s PAYE by the fraction of days worked can give the wrong answer because tax bands and relief affect the calculation.
Use the PAYE calculator with the actual gross earnings for the period, after confirming which deductions and benefits apply. The employment situations guide covers related changes at work.
Agree the earnings before calculating tax
Ask payroll for the start or leaving date, the pay period and the basis used to calculate salary. A contractual monthly salary is not necessarily the amount earned in the first run. Calendar days, working days and a fixed divisor can produce different figures; do not assume one method applies to every employment arrangement.
For example, an agreed calculation might produce KES 30,000 gross from a normal KES 60,000 salary. That establishes earnings only. It does not establish KES 30,000 taxable pay, because allowable deductions or taxable benefits can change the tax base. Keep the approved calculation with the first payslip.
Calculate tax from taxable pay
KRA’s PAYE guidance sets out monthly bands and personal relief. For an isolated tax illustration, assume payroll has established KES 30,000 taxable pay, the employee qualifies for KES 2,400 personal relief, and there are no other reliefs or exemptions. Tax before relief is KES 2,400 on the first KES 24,000 plus KES 1,500 on the next KES 6,000. PAYE is therefore KES 1,500.
This is not a net-salary example: it starts after allowable deductions. It also assumes no overlapping employer or special residency issue. Compare it with KES 60,000 taxable pay under the same assumptions: PAYE is KES 10,383.35. Half of that, KES 5,191.68 rounded, is not the KES 1,500 result for KES 30,000 taxable pay. Progressive tax makes a simple proportional shortcut unreliable.
Review each deduction independently
Ask which earnings base and period payroll used for NSSF, SHIF and the Housing Levy. Do not halve every statutory amount merely because the salary is reduced, or treat every deduction from cash as tax-deductible. Use the taxable-pay explanation to follow the bridge from gross earnings to the tax base.
Check separately whether an allowance, benefit or reimbursement applies for the partial period. A full monthly benefit valuation or a payment for another period should not disappear just because basic salary is smaller. Ask for the reason for each entry rather than assuming it shares the same proration rule.
Check overlapping jobs and delayed first pay
If your old employer also pays you in the month, tell payroll and keep both payslips. Read PAYE when changing jobs before treating two calculations as an accurate annual result. If the first payment includes earnings from an earlier period, request an allocation rather than calling the entire amount ordinary pay for the payment month.
Send payroll a focused query
State the contractual salary, dates worked, gross amount used and the line you cannot reconcile. Ask for the taxable-pay calculation and relief applied. Resolve the earnings question first; a perfectly calculated tax amount can still be based on the wrong salary. Retain the response for your year-end P9 reconciliation.
Sources and review date
Published and reviewed on 2 November 2026. Use the rules and official instructions applicable to the payroll period.