Staying compliant with the Kenya Revenue Authority (KRA) and the Social Health Authority (SHA) requires absolute precision when managing monthly payroll for employees across multiple branches.
Under the latest 2026 statutory updates, employee statutory deductions undergo several structural calculations:
1. NSSF Tier I & Tier II: Tier I applies to earnings up to the Lower Earnings Limit (KSh 9,000) capped at KSh 540. Tier II applies to pensionable earnings up to KSh 108,000, capped at KSh 5,940.
2. SHIF (Social Health Insurance Fund): Calculated at 2.75% of gross monthly salary (minimum KSh 300/month). SHIF is recognized as an allowable tax deduction prior to PAYE tax computation.
3. Affordable Housing Levy: Set at 1.5% of gross monthly salary for both employee and employer.
4. KRA Personal Tax Relief: Granted at KSh 2,400 per month (KSh 28,800 annually) for resident employees.
With Pixel Point Now, payroll automation auto-calculates all tax bands, non-cash benefit exemptions up to KSh 5,000, voluntary pension scheme caps up to KSh 30,000, and generates downloadable KRA P10 monthly filing files instantly.
Calculate Kenya 2026 Salary Deductions Online
Compute exact PAYE, NSSF Tier I & II, SHIF (2.75%), and Housing Levy for your staff instantly.