Kenya Payroll Changes and Deadlines

Use effective dates

A Finance Bill is a proposal; it does not establish the final payroll rule. Check the enacted law, commencement date and current official implementation notice. A page labelled 2026 should not imply that every rate began in 2026. Historical payslips may correctly use different deductions.

PAYE deductions changed in December 2024

KRA stated that the December 2024 changes apply to that payroll period and subsequent periods. Employee Housing Levy and SHIF contributions became allowable deductions. Pension and qualifying mortgage-interest limits increased to KES 30,000 monthly. Qualifying post-retirement medical fund contributions have a KES 15,000 monthly limit. Do not combine current deductions with superseded relief treatment.

NSSF limits changed in February 2026

The lower and upper earnings limits became KES 9,000 and KES 108,000. Employee and employer maximum contributions each rose from KES 4,320 to KES 6,480. Employees earning no more than KES 72,000 did not see a higher total NSSF deduction from this ceiling change. Higher contributions can reduce PAYE, so the increase in NSSF is not necessarily the same as the fall in net pay.

Keep the health transition separate

SHIF replaced the previous NHIF contribution arrangements in 2024; that transition did not start in 2026. Current salaried contributions are 2.75% with a KES 300 minimum and no cap. Historical comparisons must use matching periods and tax treatment. Do not combine changes from different years and present the total as a single monthly payroll change.

Check your next deadline

Employer PAYE returns and payment are due by the ninth of the following month. Housing Levy uses nine working days, which is a different rule. Individual annual returns have their own deadlines and should not be confused with monthly PAYE. Consult current KRA notices for the relevant return year; the articles below cover annual filing changes and current payroll developments. Check primary sources again before making a payroll change.

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.