Salary Deductions in Kenya

Start with four separate lines

A typical employee pays NSSF, SHIF, the employee Housing Levy and PAYE. Under current rules, employee NSSF, SHIF and Housing Levy reduce taxable employment income before PAYE. They are still cash deductions from gross salary. Employer contributions are additional employer costs and must not be deducted from the employee again.

NSSF from February 2026

Employee NSSF is 6% of pensionable earnings up to KES 108,000, giving a maximum KES 6,480 monthly, with an employer match. The lower earnings limit is KES 9,000: Tier I is up to KES 540 and Tier II up to KES 5,940 per side. January 2026 used the earlier KES 72,000 upper limit and KES 4,320 maximum. Use the correct period when checking old payslips.

SHIF health contributions

For salaried employment, SHIF is 2.75% of gross salary or wages, with a KES 300 monthly minimum and no upper cap. A salary of KES 100,000 therefore gives KES 2,750. There is no general matching employer contribution. Current SHIF payments reduce taxable pay; the older insurance-credit treatment must not be applied alongside that deduction.

Affordable Housing Levy

The employee and employer each contribute 1.5% of gross monthly salary under the applicable pay definition. Regular cash allowances and irregular payments can have different treatment: do not assume every bonus or non-cash benefit belongs in the levy base. The employee share is deductible before PAYE. Remittance is due within nine working days after month-end.

Reconcile your salary

For KES 100,000 regular monthly salary, NSSF of KES 6,000, SHIF of KES 2,750 and Housing Levy of KES 1,500 leave KES 89,750 taxable pay. A resident employee with standard personal relief pays KES 19,308.35 PAYE and takes home KES 70,441.65 before personal deductions. This assumes pensionable pay equals gross pay and no additional benefits, reliefs or exemptions. Check both the payslip deduction and the receiving agency statement.

Sources and further checks

• KRA PAYE rates and deductions
• KRA December 2024 PAYE amendments
• KRA employer guidance
• NSSF Year 4 contribution notice

Use the linked topic articles below for detailed examples and eligibility checks.