Mortgage Relief Calculator Kenya 2026
If you have a home loan, mortgage interest relief is one of the biggest PAYE savings available — up to KES 30,000 of interest a month comes off your taxable income, worth up to KES 9,000 in tax saved. See your saving below.
Max interest deductible
KES 30,000/mo
KES 360,000 a year
Max PAYE saved
KES 9,000/mo
At the 30% tax band
Mechanism
Deduction
Reduces taxable income
What you save by mortgage interest paid
Your saving is the allowable interest multiplied by your marginal PAYE rate. The figures below assume the 30% band, which applies to most middle-income earners.
| Monthly interest paid | Allowable deduction | Est. PAYE saved (30%) |
|---|---|---|
| Ksh 10,000 | Ksh 10,000 | Ksh 3,000/mo |
| Ksh 15,000 | Ksh 15,000 | Ksh 4,500/mo |
| Ksh 20,000 | Ksh 20,000 | Ksh 6,000/mo |
| Ksh 25,000 | Ksh 25,000 | Ksh 7,500/mo |
| Ksh 30,000 | Ksh 30,000 | Ksh 9,000/mo |
| Ksh 40,000 (capped) | Ksh 30,000 | Ksh 9,000/mo |
If you pay tax in the 25% band your saving is lower; in the 32.5% or 35% bands it is higher. Use the full calculator for your exact figure.
Who qualifies
The loan is from a specified financial institution (a bank, building society or similar listed in the Income Tax Act).
The money was used to buy or improve a home that you occupy as your primary residence.
You claim on only one property at a time.
You hold the mortgage statement showing the interest portion of your repayments.
How to claim it (and why most people miss out)
Submit your annual mortgage interest certificate to your employer's HR/payroll team. From 2026 employers are expected to apply the relief monthly rather than at year-end. If it was not applied during the year, you can claim it on your annual iTax return for a refund. Thousands of borrowers never submit the statement and lose up to KES 9,000 a month — if you have a home loan, send it to HR today.
See all Kenya tax reliefs