--- title: "Kenya" id: "11768" type: "global-payroll" slug: "kenya" published_at: "2025-08-05T06:36:12+00:00" modified_at: "2026-10-06T15:51:32+00:00" url: "https://topsourceworldwide.com/global-payroll/kenya/" markdown_url: "https://topsourceworldwide.com/global-payroll/kenya.md" taxonomy_continent: - "Africa" --- # Payroll Services in Kenya Fully managed Kenyan payroll: PAYE, NSSF, SHIF and the Housing Levy calculated on every payslip, returns filed on iTax and every payment made on time, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What Kenyan payroll actually involves Kenyan payroll combines PAYE at five rates with three statutory contributions and a small training levy. Almost everything is due by the 9th of the following month, and every employee must receive an itemised payslip. ### NSSF at 6% each Employers and employees each pay 6% of pay up to KES 108,000 a month from February 2026, a maximum of KES 6,480 each. ### A matched 1.5% Housing Levy The Affordable Housing Levy takes 1.5% of gross salary from the employee and the same from the employer, with no ceiling. ### 2.75% to SHIF Employees pay 2.75% of gross salary to the Social Health Insurance Fund, at least KES 300 a month and with no ceiling. ### PAYE from 10% to 35% Monthly PAYE runs from 10% on the first KES 24,000 to 35% above KES 800,000, less a KES 2,400 personal relief. The Finance Act 2026 left the bands unchanged. ### Itemised payslips Every payment comes with a written payslip showing gross pay, each deduction and its purpose, and how the net pay was paid. ## Our Partners Globally ## Calculate Your Employee Costs in Kenya Enter a gross annual salary to see the employer’s statutory costs for a Kenyan employee in 2026: 6% NSSF on pay up to KES 108,000 a month, the 1.5% Affordable Housing Levy on gross salary and the KES 50 monthly NITA levy. SHIF and PAYE are withheld from the employee’s pay. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Kenya Annually Monthly | | British Pound | Kenya | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Kenyan hiring costs before you commit Tell us the role and the salary. We’ll send back the full Kenyan employer cost and the employee’s net pay after PAYE, NSSF, SHIF and the Housing Levy within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in Kenya Explained Up to KES 108,000 a month, a Kenyan employee costs about 7.5% on top of gross salary in statutory contributions, plus a KES 50 training levy. Above that the NSSF stops and only the 1.5% Housing Levy grows with pay. SHIF and PAYE come out of the employee’s salary. Here’s the breakdown. #### NSSF, the Housing Levy and SHIF The National Social Security Fund takes 6% of pay from the employee and 6% from the employer. From February 2026, the fourth year of the NSSF Act’s phase-in, contributions stop at an upper earnings limit of KES 108,000 a month: KES 540 each on the first KES 9,000 (Tier I) and up to KES 5,940 each on pay between KES 9,000 and KES 108,000 (Tier II), a maximum of KES 6,480 each. The Affordable Housing Levy is 1.5% of gross salary from the employee, matched by 1.5% from the employer, with no ceiling, and is collected by the Kenya Revenue Authority. Employees also pay 2.75% of gross salary to the Social Health Insurance Fund (SHIF), with a minimum of KES 300 a month and no ceiling; employers make no SHIF contribution. Employers pay a training levy of KES 50 a month per employee to the National Industrial Training Authority (NITA). #### PAYE and personal relief PAYE is withheld monthly at 10% on the first KES 24,000 of taxable pay, 25% on the next KES 8,333, 30% up to KES 500,000, 32.5% up to KES 800,000 and 35% above that, the bands in force since July 2023. A personal relief of KES 2,400 a month comes off the tax. Pension contributions, including NSSF, up to KES 30,000 a month, SHIF and the Housing Levy are all deducted from pay before tax. The Finance Act 2026 left the bands and reliefs unchanged. Since 1 July 2026, gratuity is tax-exempt only on contracts of at least three continuous years and up to 31% of the emoluments earned in that period. From 2027, employees file their annual returns by 30 April instead of 30 June. #### Payslips, deadlines and working time Every employee must receive a written pay statement at or before each payment, showing gross pay, each deduction and its purpose, and how the net amount is paid. PAYE, NSSF and SHIF are due by the 9th of the following month, with the PAYE return filed on iTax by the same date, and the Housing Levy is due by the ninth working day after the end of the month. Late PAYE carries a 5% penalty plus interest of 1% a month, and a late return the higher of 25% of the tax due or KES 10,000. The general wage order sets a normal working week of up to 52 hours over six days. Overtime is paid at one and a half times the normal hourly rate, and work on a rest day or public holiday at twice the rate. #### What a Kenyan employee actually costs For an employee earning KES 100,000 gross a month, the employer pays KES 6,000 to NSSF, KES 1,500 in Housing Levy and KES 50 to NITA, a total cost of KES 107,550 a month, 7.55% on top of salary. The employee pays the same NSSF and Housing Levy amounts, KES 2,750 to SHIF and KES 19,308.35 in PAYE, and takes home KES 70,441.65. Above KES 108,000 a month the NSSF stops, so at KES 300,000 the employer’s share falls to 3.68%. Minimum wages are set by occupation and location. They rose 12% from 1 May 2026, and a general labourer in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret now earns at least KES 18,047.40 a month before housing allowance. Employers must provide housing or pay a housing allowance unless it is consolidated into the salary. #### Leave, notice and redundancy Employees are entitled to at least 21 working days of paid annual leave after every 12 months of service, three months of maternity leave and two weeks of paternity leave on full pay, and, after two months of service, seven days of sick leave on full pay followed by seven on half pay each year. Contracts paid monthly can be ended with 28 days’ written notice, unless the contract sets a longer period. In a redundancy, the employer notifies the employee or their union and the local labour officer in advance, pays one month’s notice or wages in lieu, pays out accrued leave and pays severance of at least 15 days’ pay for each completed year of service. ## Kenyan payroll contributions and taxes, 2026 | Item | Employer | Employee | Applies to | | --- | --- | --- | --- | | NSSF | 6% | 6% | Pay up to KES 108,000 a month, from February 2026 | | Affordable Housing Levy | 1.5% | 1.5% | Gross salary, no ceiling | | Social Health Insurance Fund (SHIF) | — | 2.75% | Gross salary, minimum KES 300 a month | | NITA training levy | KES 50 a month | — | Per employee | | PAYE | — | 10% to 35% | Taxable pay, less a KES 2,400 monthly personal relief | | Minimum wage, general labourer | KES 18,047.40 a month | — | Nairobi, Mombasa, Kisumu, Nakuru and Eldoret, from 1 May 2026, before housing allowance | | Payment deadline | 9th of the next month | — | PAYE, NSSF and SHIF; Housing Levy by the ninth working day | ### Kenyan PAYE bands, 2026 | Monthly taxable pay | Rate | | --- | --- | | First KES 24,000 | 10% | | Next KES 8,333, up to KES 32,333 | 25% | | Next KES 467,667, up to KES 500,000 | 30% | | Next KES 300,000, up to KES 800,000 | 32.5% | | Above KES 800,000 | 35% | ### Gross to net and employer cost in Kenya, 2026 | Monthly gross | Employee NSSF, SHIF and Housing Levy | PAYE | Net pay | Employer NSSF, Housing Levy and NITA | Total monthly cost | | --- | --- | --- | --- | --- | --- | | KES 50,000 | KES 5,125.00 | KES 5,845.85 | KES 39,029.15 | KES 3,800.00 | KES 53,800.00 | | KES 100,000 | KES 10,250.00 | KES 19,308.35 | KES 70,441.65 | KES 7,550.00 | KES 107,550.00 | | KES 300,000 | KES 19,230.00 | KES 76,614.35 | KES 204,155.65 | KES 11,030.00 | KES 311,030.00 | The gross-to-net table is for an employee with no other reliefs or deductions: NSSF, SHIF and the Housing Levy are deducted before PAYE, which is shown after the KES 2,400 personal relief. NSSF stops at KES 6,480 each on pay above KES 108,000 a month. These are TopSource calculations from the verified 2026 rates. Rates, limits and amounts shown are for 2026 and were verified on 6 October 2026 against the NSSF Year 4 contribution notice, Kenya Revenue Authority PAYE and Finance Act 2026 guidance, the Regulation of Wages (General) (Amendment) Order 2026, the Employment Act and published tax sources. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Kenyan payroll service works 1. Map your setup We confirm your employer registrations with KRA, NSSF, the Social Health Authority and NITA, each employee’s KRA PIN, NSSF and SHA numbers, and any collective agreement or wage order that sets pay and allowances. 2. Migrate or onboard New hires are registered with NSSF and the Social Health Authority from their first month. Year-to-date pay, PAYE, reliefs and leave balances are carried across so nothing is lost at the changeover. 3. Run and review Each period you receive a payroll report for approval before anything is paid: gross to net per employee, NSSF, SHIF, Housing Levy and PAYE, with variances explained. Nothing is paid until you approve it. 4. File and pay We pay salaries, issue itemised payslips, file the PAYE return on iTax and pay PAYE, NSSF and SHIF by the 9th and the Housing Levy on time, whether your team works in Nairobi, Mombasa or anywhere else in Kenya. 5. Stay current NSSF limits have stepped up each February under the NSSF Act, minimum wages change by gazetted order and each Finance Act takes effect in July. We apply each change as it takes effect and re-verify the figures on this page. ## Why Choose TopSource for Global Payroll in Kenya TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We run Kenyan payroll in-house and file under your own KRA, NSSF and SHA registrations rather than a bureau’s, so the same team that files your PAYE returns answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions, taxes and fees, and one live Portico view of Kenya beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Kenya and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Kenya Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Kenyan payroll FAQs ### What are employer payroll contributions in Kenya in 2026? Employers pay 6% NSSF on pay up to KES 108,000 a month, at most KES 6,480, a 1.5% Affordable Housing Levy on gross salary with no ceiling and a KES 50 monthly NITA levy. SHIF is paid by employees only. ### What are the PAYE rates in Kenya in 2026? Monthly PAYE is 10% on the first KES 24,000 of taxable pay, 25% on the next KES 8,333, 30% up to KES 500,000, 32.5% up to KES 800,000 and 35% above, less a KES 2,400 personal relief. The Finance Act 2026 did not change the bands. ### What are the NSSF rates from February 2026? Employers and employees each pay 6% of pay up to KES 108,000 a month: KES 540 each on the first KES 9,000 and up to KES 5,940 each on the rest, a maximum of KES 6,480 each. ### How much does it cost to employ someone in Kenya? Up to KES 108,000 a month, statutory employer costs add about 7.5% to gross salary plus KES 50: an employee on KES 100,000 a month costs KES 107,550. Tell us the role and salary and we’ll send the full cost within one business day. ### What must a Kenyan payslip show? A written pay statement, given at or before each payment, showing gross pay, each deduction and its purpose, including PAYE, NSSF, SHIF and the Housing Levy, and how the net amount is paid. ### When are PAYE, NSSF and SHIF due in Kenya? By the 9th of the following month, with the PAYE return filed on iTax by the same date. The Affordable Housing Levy is due by the ninth working day after the end of the month. ### What is the minimum wage in Kenya in 2026? Minimum wages depend on occupation and location. They rose 12% from 1 May 2026, and a general labourer in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret earns at least KES 18,047.40 a month before housing allowance. ### How much annual leave do employees get in Kenya? At least 21 working days on full pay after every 12 consecutive months of service. Maternity leave is three months and paternity leave two weeks, both on full pay. ### How does termination work in Kenya? Contracts paid monthly can be ended with 28 days’ written notice unless the contract gives more. Employees made redundant also receive one month’s notice or pay in lieu, their accrued leave and severance of at least 15 days’ pay for each completed year of service. ### Can a foreign company run payroll in Kenya without an entity? Registering as an employer with KRA, NSSF and the Social Health Authority requires a local presence, such as a Kenyan subsidiary or a registered branch. Without one, the usual route is an Employer of Record. TopSource can run payroll for your Kenyan entity or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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Tögrög](https://topsourceworldwide.com/global-payroll/mongolia/) [Montenegro Capital: Podgorica Currency: Euro](https://topsourceworldwide.com/global-payroll/montenegro/) [Morocco Capital: Rabat Currency: Moroccan Dirham](https://topsourceworldwide.com/global-payroll/morocco/) [Mozambique Capital: Maputo Currency: Mozambique metical](https://topsourceworldwide.com/global-payroll/mozambique/) [Namibia Capital: Windhoek Currency: Namibian Dollar](https://topsourceworldwide.com/global-payroll/namibia/) [Nepal Capital: Kathmandu Currency: Rupee](https://topsourceworldwide.com/global-payroll/nepal/) [New Zealand Capital: Wellington Currency: New Zealand Dollar](https://topsourceworldwide.com/global-payroll/new-zealand/) [Nicaragua Capital: Managua Currency: Nicaraguan córdoba](https://topsourceworldwide.com/global-payroll/nicaragua/) [Nigeria Capital: Abuja Currency: Nigerian Naira](https://topsourceworldwide.com/global-payroll/nigeria/) [Norway Capital: Oslo Currency: Norwegian krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more