Running a compliant payroll in Kenya means correctly deducting and remitting four major statutory contributions every month. Here's what you need to know in 2026:
1. PAYE (Pay As You Earn)
PAYE is income tax deducted from employees' salaries. It's calculated using KRA's graduated tax bands, ranging from 10% to 35%. The personal relief of KSh 2,400/month applies to all employees. File and pay by the 9th of the following month.
2. NSSF (National Social Security Fund)
Under the 2013 NSSF Act, contributions are based on the lower and upper earning limits. Both employee and employer contribute. Our advisors keep you current with the latest court-validated position.
3. SHA/NHIF (Social Health Authority)
As of 2025, NHIF has transitioned to the Social Health Authority (SHA). Contributions are based on a percentage of gross salary. Ensure your system is updated to reflect SHA rates and account numbers.
4. NITA Levy
The National Industrial Training Authority levy is KSh 50 per employee per month, remitted alongside NSSF.
Missing any of these attracts penalties. Avatechtax's managed payroll service handles every deduction, remittance, and statutory return — giving you complete peace of mind.
