ComplyBora
Last reviewed 2026-11-04 Applies to: 2026 (no change to resident bands under the Finance Act 2026)
Short answer: employers deduct PAYE from staff pay using progressive monthly bands from 10% to 35%, less a personal relief of KES 2,400 a month, and pay KRA by the 9th of the following month.
| Monthly taxable pay | Rate |
|---|---|
| First KES 24,000 | 10% |
| Next KES 8,333 (to 32,333) | 25% |
| Next KES 467,667 (to 500,000) | 30% |
| Next KES 300,000 (to 800,000) | 32.5% |
| Above KES 800,000 | 35% |
Worked example
Taxable pay KES 50,000: 24,000 × 10% = 2,400; 8,333 × 25% = 2,083.25; 17,667 × 30% = 5,300.10. Tax before relief 9,783.35, less relief 2,400 = PAYE of KES 7,383.35.
Filing
PAYE returns are filed online on iTax, and a nil return is required if there is no PAYE to declare. NSSF, SHIF and the Affordable Housing Levy are separate payroll deductions.
Related guides
Official and source references
General information built on the official sources above. Confirm the current position with the issuing authority before acting.