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Kenya KRA PAYE ITAX, NSSF, NHIF Tax rates

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Kenya PAYE TAX RATES

1. KRA ITAX PAYE

KRA ITAX PAYE rates e from 1 January 2018:

Monthly Taxable Pay (Ksh)Annual Taxable Pay (Ksh)Rate of Tax (%)
Up to 12,298Up to 147,58010
12,299 - 23,885147,581 - 286,62315
23,886 - 35,472286,624 - 425,66620
35,473 - 47,059425,667 - 564,70925
Above 47,059Above 564,70930

Other KRA ITAX PAYE variables:

 NameMonthly Limit (Ksh)Annual Limit (Ksh)Effective Since
Personal Relief1,40816,8961st January 2018
Insurance Relief5,00060,0001st January 2007
Allowable Pension Fund Contribution20,000240,0001st January 2006
Allowable HOSP Contribution4,00048,0001st January 1999
Owner Occupier Interest25,000300,0001st January 2017
Disability Exemption150,0001,800,00010th March 2010

2. NHIF

Below are the NHIF rates effective from 1 April 2015:

Gross Pay (Ksh)Deduction (Ksh) Gross Pay (Ksh)Deduction (Ksh)
Up to 5,999150 40,000 - 44,9991,000
6,000 - 7,999300 45,000 - 49,9991,100
8,000 - 11,999400 50,000 - 59,9991,200
12,000 - 14,999500 60,000 - 69,9991,300
15,000 - 19,999600 70,000 - 79,9991,400
20,000 - 24,999750 80,000 - 89,9991,500
25,000 - 29,999850 90,000 - 99,9991,600
30,000 - 34,999900 100,000 and above1,700
35,000 - 39,999950   

3. NSSF

New Rates

The new NSSF Act came into effect on 10 January 2014. Under this act 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 to NSSF, subject to the following monthly limits:

TierPensionable Pay
IUp to 6,000
II6,001 - 18,000

Old Rates

Under the old NSSF Act, the employee and the employer contributed 5% of gross pay each. The combined employee and employer contribution for each pay period was subject to the following limits:

Pay FrequencyMaximum Contribution (Ksh)
Monthly400
Biweekly200
Weekly100

Some employers continue to use the old rates.


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