Updated 24th April 2020
Our Payroll calculators have been updated to work with the latest rates effective April 2020.
PAYE
New Rates (Effective April 2020)
The Tax Laws (Amendment) Bill, 2020 changes the PAYE rates effective April 2020 to:
Monthly Taxable Pay (Ksh) | Annual Taxable Pay (Ksh) | Rate of Tax (%) |
---|---|---|
Up to 24,000 | Up to 288,000 | 10 |
24,001 – 40,667 | 288,001 – 488,000 | 15 |
40,668 – 57,333 | 488,001 – 688,000 | 20 |
Above 57,333 | Above 688,000 | 25 |
The personal relief has also been changed to Ksh 2,400 per month or Ksh 28,800 per annum.
Previous Rates (January 2018)
Monthly Taxable Pay (Ksh) | Annual Taxable Pay (Ksh) | Rate of Tax (%) |
---|---|---|
Up to 12,298 | Up to 147,580 | 10 |
12,299 – 23,885 | 147,581 – 286,623 | 15 |
23,886 – 35,472 | 286,624 – 425,666 | 20 |
35,473 – 47,059 | 425,667 – 564,709 | 25 |
Above 47,059 | Above 564,709 | 30 |
Other PAYE parameters:
Monthly Limit (Ksh) | Annual Limit (Ksh) | Effective Since | |
---|---|---|---|
Personal Relief | 1,408 | 16,896 | 1 January 2018 |
Insurance Relief | 5,000 | 60,000 | 1 January 2007 |
Allowable Pension Fund Contribution | 20,000 | 240,000 | 1 January 2006 |
Allowable HOSP Contribution | 8,000 | 96,000 | 1 July 2018 |
Affordable Housing Relief | 9,000 | 108,000 | 1 July 2018 |
Allowable Owner Occupier Interest | 25,000 | 300,000 | 1 January 2017 |
Disability Exemption | 150,000 | 1,800,000 | 10 March 2010 |
Fringe Benefit Tax
The employer is required to pay fringe benefit tax on any loans advanced to employees at an interest rate below the prevailing market interest rate. This applies to all loans issued after 11 June 1998, and to those issued on or before 11 June 1998 but whose terms and conditions have changed after this date.
Market interest rates for 2020 as published by KRA:
Quarter | Interest Rate (%) |
---|---|
January to March | 7 |
April to June | – |
July to September | – |
October to December | – |
Market interest rates for 2019:
Quarter | Interest Rate (%) |
---|---|
January to March | 7 |
April to June | 7 |
July to September | 7 |
October to December | 6 |
NHIF
NHIF rates in effect from 1 April 2015:
Gross Pay (Ksh) | Deduction (Ksh) | Gross Pay (Ksh) | Deduction (Ksh) | |
---|---|---|---|---|
Up to 5,999 | 150 | 40,000 – 44,999 | 1,000 | |
6,000 – 7,999 | 300 | 45,000 – 49,999 | 1,100 | |
8,000 – 11,999 | 400 | 50,000 – 59,999 | 1,200 | |
12,000 – 14,999 | 500 | 60,000 – 69,999 | 1,300 | |
15,000 – 19,999 | 600 | 70,000 – 79,999 | 1,400 | |
20,000 – 24,999 | 750 | 80,000 – 89,999 | 1,500 | |
25,000 – 29,999 | 850 | 90,000 – 99,999 | 1,600 | |
30,000 – 34,999 | 900 | 100,000 and above | 1,700 | |
35,000 – 39,999 | 950 |
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 montly limits:
Tier | Pensionable Pay |
---|---|
I | Up to 6,000 |
II | 6,001 – 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 Frequency | Maximum Contribution (Ksh) |
---|---|
Monthly | 400 |
Biweekly | 200 |
Weekly | 100 |
Due to ongoing litigation some employers continue to use the old rates.