Tax Rates

PAYE, Fringe Benefit Tax, NHIF, NSSF and Housing Levy parameters for 2024.

PAYE

PAYE rates in effect from 1 July 2023:[1]

Monthly Taxable Pay (Ksh) Annual Taxable Pay (Ksh) Rate of Tax (%)
Up to 24,000 Up to 288,000 10.0
24,001 - 32,333 288,001 - 388,000 25.0
32,334 - 500,000 388,001 - 6,000,000 30.0
500,001 - 800,000 6,000,001 - 9,600,000 32.5
Above 800,000 Above 9,600,000 35.0

PAYE rates in effect from 1 January 2021 up to 30 June 2023:

Monthly Taxable Pay (Ksh) Annual Taxable Pay (Ksh) Rate of Tax (%)
Up to 24,000 Up to 288,000 10
24,001 - 32,333 288,001 - 388,000 25
Above 32,333 Above 388,000 30

Other PAYE parameters:

  Monthly Limit (Ksh) Annual Limit (Ksh) Effective Since
Personal Relief 2,400 28,800 25 April 2020
Insurance Relief 5,000 60,000 1 January 2007
Allowable Pension Fund Contribution 20,000 240,000 1 January 2006
Allowable HOSP Contribution 0 0 1 January 2021
Affordable Housing Relief 9,000 108,000 1 July 2018
Allowable Owner Occupier Interest 25,000 300,000 1 January 2017
Disability Exemption 150,000 1,800,000 10 March 2010

As from 1 January 2022 NHIF contributions qualify for insurance relief.

Fringe Benefit Tax

The employer is required to pay fringe benefit tax on any loans advanced to employees at an interest rate below the prevailing market interest rate. This applies to all loans issued after 11 June 1998, and to those issued on or before 11 June 1998 but whose terms and conditions have changed after this date.

Market interest rates for 2024 as published by KRA:

Quarter Interest
Rate (%)
January to March 15
April to June -
July to September -
October to December -

Market interest rates for 2023:

Quarter Interest
Rate (%)
January to March 9
April to June 10
July to September 11
October to December 13

NHIF

NHIF rates in effect from 1 April 2015:

Gross Pay (Ksh) Deduction (Ksh)   Gross Pay (Ksh) Deduction (Ksh)
Up to 5,999 150   40,000 - 44,999 1,000
6,000 - 7,999 300   45,000 - 49,999 1,100
8,000 - 11,999 400   50,000 - 59,999 1,200
12,000 - 14,999 500   60,000 - 69,999 1,300
15,000 - 19,999 600   70,000 - 79,999 1,400
20,000 - 24,999 750   80,000 - 89,999 1,500
25,000 - 29,999 850   90,000 - 99,999 1,600
30,000 - 34,999 900   100,000 and above 1,700
35,000 - 39,999 950      

NSSF

Under the NSSF Act of 2013, contributions to NSSF are divided into Tier I and Tier II. Organisations may opt out of Tier II contributions if they have an alternative pension scheme in place. The employer and employee each contribute 6% of pensionable pay, subject to the following monthly limits.

February 2024 onwards:

Tier Pensionable Pay
I Up to 7,000
II 7,001 - 36,000

Up to January 2024:

Tier Pensionable Pay
I Up to 6,000
II 6,001 - 18,000

Housing Levy

Starting 1 July 2023, the employer and employee are each required to pay 1.5% of monthly gross salary as Affordable Housing Levy.



[1] These PAYE rates and the housing levy were introduced in the Finance Act of 2023. Though the effective date for both of them was meant to be 1 July 2023, operation of the entire act was suspended by the courts until 28 July 2023.