Employer Cost Calculator Kenya 2026
The true cost to employ.
Gross salary is only part of the bill. Employers also match NSSF and the Housing Levy. Enter a salary to see the full monthly cost of employment in Kenya under the 2026 rates.
Total Employer Cost
What it actually costs to employ someone
Total cost to employer per month
Gross Salary
Ksh 100,000
Employer NSSF (6%)
Ksh 6,000
Employer Housing (1.5%)
Ksh 1,500
Employer Cost Breakdown
Employers must match employee NSSF and Housing Levy contributions. This adds Ksh 7,500 (7.5%) to the cost of employment beyond gross salary.
2026 Kenya PAYE Tax Bands
| Monthly Band | Rate |
|---|---|
| Ksh 0 - Ksh 24,000 | 10% |
| Ksh 24,000 - Ksh 32,333 | 25% |
| Ksh 32,333 - Ksh 500,000 | 30% |
| Ksh 500,000 - Ksh 800,000 | 32.5% |
| Above Ksh 800,000 | 35% |
Personal Relief: KES 2,400/month automatically applied
The real cost of employment in Kenya
The salary you offer is not the figure that leaves the business. An employer in Kenya also matches the employee's NSSF contribution and pays a Housing Levy of 1.5% of gross. SHIF is deducted from the employee and is not an employer cost.
This matters for budgeting headcount, pricing a contract, or comparing a salaried hire with a contractor. Enter a gross salary to see the total monthly cost to employ, with the matched NSSF and Housing Levy broken out.
Questions about employer cost
What does it cost to employ someone in Kenya?
More than the gross salary. On top of gross pay an employer matches NSSF (6% up to KES 108,000, so up to KES 6,480) and the Housing Levy (1.5% of gross). For a KES 100,000 salary the total monthly cost is roughly KES 107,500.
Do employers pay NSSF and the Housing Levy?
Yes. NSSF is matched shilling for shilling by the employer, and the Affordable Housing Levy is a 1.5% employer contribution on top of the 1.5% deducted from the employee. Both are a real cost of employment.
Is SHIF paid by the employer?
SHIF (2.75%) is deducted from staff pay and not matched by the employer, so it does not add to the cost of employing someone. The employer adds only the matched NSSF and the 1.5% Housing Levy contribution.