How to Calculate Net Salary in Kenya (2026): PAYE, NSSF, SHIF and Housing Levy

Educational estimate - not tax or payroll advice. The calculations below are illustrative and depend on the stated assumptions; they are not legal or employment advice. Rules and relief eligibility can change. Before using an amount to set payroll or make a job or financial decision, confirm the rules effective for the relevant period with your employer's payroll team or a qualified Kenyan tax professional.

Gross salary is the number in a job offer, but it is not always the amount that reaches your bank account. PAYE, pension contributions, health insurance and the Affordable Housing Levy all affect the final figure.

For a resident employee earning KSh 100,000 a month as regular cash salary, the estimated take-home pay under the rules checked for 2026 is KSh 70,442. This guide shows how that estimate is built, what each deduction means and why two people on the same gross salary can receive different net pay.

The examples below use the NSSF rates that took effect in February 2026. They assume a resident employee, regular monthly cash pay, no taxable benefits, no extra pension or mortgage deduction, no insurance relief and no personal deductions such as a loan or SACCO repayment. Your payslip may differ.

Last checked: 19 September 2026.

Quick answer: how to calculate net salary

Start with your monthly cash earnings. Work out employee NSSF, SHIF and Housing Levy. Subtract the deductions allowed when calculating taxable employment income, then apply the progressive PAYE bands. For a resident employee, subtract the KSh 2,400 monthly personal relief from gross PAYE. Finally, subtract the statutory deductions and any other authorised deductions from cash pay.

A simple version of the calculation is:

Net pay = cash earnings - employee NSSF - SHIF - employee Housing Levy - net PAYE - other personal deductions.

PAYE is calculated on taxable employment income, which can include taxable benefits and other employment payments. That is why the PAYE calculation and the amount of cash in your payslip do not always begin with the same number. KRA lists the current tax bands, personal relief and allowable deductions on its PAYE guidance page.

Gross salary, taxable income and net salary

These terms describe different points in a payroll calculation:

• Basic salary is the core salary in an employment agreement, before allowances and deductions.
• Gross monthly cash pay is basic salary plus regular cash allowances, before employee deductions. For example, KSh 90,000 basic salary plus a regular KSh 10,000 cash allowance gives KSh 100,000 gross cash pay for this example.
• Taxable employment income is the amount used to calculate PAYE after the deductions allowed by tax law. It may also include taxable benefits, bonuses or other employment income.
• Net salary is the cash left after PAYE and employee deductions. A loan repayment, salary advance or SACCO contribution can make banked pay lower even though it does not change the statutory PAYE bands.

The Housing Levy calculation uses gross monthly salary, including regular cash allowances such as housing, travel or commuter allowances. KRA explains which payments are included and which irregular or non-cash payments are excluded in its Housing Levy guidance. PAYE has its own rules for taxable benefits and employment income.

Kenya salary deductions in 2026

PAYE: KRA's monthly bands are 10% on the first KSh 24,000 of taxable income, 25% on the next KSh 8,333, 30% on the next KSh 467,667, 32.5% on the next KSh 300,000, and 35% on monthly income above KSh 800,000. These are progressive bands. A person earning above a band threshold does not pay the highest rate on all of their income.

A resident employee receives KSh 2,400 personal relief per month. KRA states that non-residents are not entitled to this personal relief. The table below assumes a resident employee and includes only this standard relief.

NSSF: From February 2026, Year 4 contributions are 6% of pensionable earnings up to the KSh 108,000 upper earnings limit. Tier I covers the first KSh 9,000 and Tier II covers the next KSh 99,000. The maximum employee contribution is KSh 6,480 per month. The employer contributes its own matching amount separately. See the NSSF Year 4 notice for 2026.

SHIF: For salaried employment, the Social Health Insurance Regulations set the monthly contribution at 2.75% of gross salary or wage, subject to a KSh 300 minimum. The regulation does not set a maximum contribution for salaried pay. The employee amount is deducted and remitted by the employer. Read regulation 17 of the Social Health Insurance Regulations.

Affordable Housing Levy: The employee contribution is 1.5% of gross monthly salary. The employer pays a separate 1.5% contribution. The employee amount reduces take-home pay. KRA's 2024 PAYE update also lists the employee Housing Levy and SHIF contributions as deductions when determining taxable employment income. The update says the separate Affordable Housing Relief ceased to apply from December 2024, so do not subtract an extra housing relief from the PAYE amount in these examples. See KRA's PAYE computation update.

Net salary examples for common gross salaries

These estimates use the February 2026 NSSF rates, SHIF at 2.75%, Housing Levy at 1.5%, KRA's progressive tax bands and KSh 2,400 resident personal relief. The salary is assumed to be regular monthly cash pay. No additional pension contributions, mortgage interest, post-retirement medical fund deductions, insurance relief, taxable benefits or voluntary deductions are included. Amounts are rounded to the nearest shilling.

Worked example: KSh 100,000 gross salary

Assume the full KSh 100,000 is regular monthly cash salary and the employee is a Kenya tax resident.

1. NSSF: 6% of KSh 100,000 = KSh 6,000.
2. SHIF: 2.75% of KSh 100,000 = KSh 2,750.
3. Housing Levy: 1.5% of KSh 100,000 = KSh 1,500.
4. Taxable income for this example: KSh 100,000 - KSh 6,000 - KSh 2,750 - KSh 1,500 = KSh 89,750.
5. PAYE before personal relief: KSh 2,400 on the first KSh 24,000, plus KSh 2,083.25 on the next KSh 8,333, plus KSh 17,225.10 on the remaining KSh 57,417. Gross PAYE is about KSh 21,708.
6. PAYE after resident personal relief: KSh 21,708 - KSh 2,400 = about KSh 19,308.
7. Estimated net pay: KSh 100,000 - KSh 6,000 - KSh 2,750 - KSh 1,500 - KSh 19,308 = about KSh 70,442.

The calculator rounds its displayed amounts to whole shillings. A payroll system may apply rounding at different stages, so a small difference of a shilling or two can occur.

Why your payslip may show a different amount

The examples are a baseline, not a promise of the exact figure on every payslip. Your PAYE can change when you receive a bonus, commission, overtime, taxable benefit or a one-off payment. An employer-provided house or vehicle can affect taxable employment income even though it is not cash paid into your account.

Eligible pension contributions, mortgage interest, post-retirement medical fund contributions and insurance relief can also affect the tax calculation when the statutory conditions are met and the employer has the required information. KRA's current employer guidance explains that employers should apply supported deductions and reliefs when calculating PAYE.

Finally, net pay includes more than statutory deductions. A staff loan, court order, salary advance, health plan or savings contribution may appear separately on the payslip. Check each line and ask payroll which amount is statutory, which is tax relief, and which is a personal deduction.

Employer contributions are not employee deductions

When you compare take-home pay with an employer's total cost, keep the two sides separate. The employer's matching NSSF contribution and the employer's 1.5% Housing Levy are additional employer costs. They are not deducted a second time from the employee's salary. SHIF is calculated on the employee's salary and remitted by the employer; it does not have an employer match under the salaried contribution rule cited above.

Check your own take-home pay

Use Statum's Kenya net salary and PAYE calculator to enter your gross monthly salary and see the NSSF, SHIF, Housing Levy and PAYE lines separately. The calculator lets you add eligible reliefs and other deductions. Compare its assumptions with your employment terms and payslip before relying on an estimate for payroll or a job decision.

Rates checked against the linked KRA, NSSF and Kenya Law guidance on 19 September 2026. If a law or contribution schedule changes, payroll calculations should be updated to match the effective date.