Kenya Net Pay

Personal Income Tax Calculator

Model PAYE with SHIF, NSSF Tier I and II and the Housing Levy, plus reliefs and pension contributions.

Personal income tax

Monthly PAYE, statutory deductions and take-home pay

Pay and deductions

Notes

Insurance premiums

A relief against PAYE, not a deduction from income. It is capped at KES 5,000 a month.

Mortgage interest

Lowers the income PAYE is charged on. It is not withheld from pay, so it does not reduce take-home.

Gratuity exemption

A terminal payment at the end of a contract of service is exempt where the contract ran at least 3 years and the payment is within 31% of emoluments for the contract period. Only the excess is taxed. A renewal or extension beyond 3 years counts. With no emoluments entered, nothing is exempt.

Gratuity and statutory deductions

SHIF, NSSF and the housing levy stay on regular salary. A gratuity is not pensionable earnings, so it is not added to those bases.

What happens to the net pay

Give the take-home a job

Budget the figure that actually lands in your account, then track it against your bank and M-Pesa statements through the month.

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