Kenya PAYE Tax Calculator (Using Rates Effective July 2023)
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NB: In early July 2023, the High Court of Kenya issued conservatory orders suspending the 2023 Kenya Finance Act. On 28.07.23, the Court of Appeal lifted those orders, pending the hearing and determination of the appeal. Consequently, as at 28.07.23, the 2023 Kenya Finance Act is now operational. However, some provisions on the calculation that is effective July 2023 might change, especially on the Affordable Housing Levy, based on the appeal’s final determination.
Points to Note:
The old NSSF rates (under the repealed NSSF Act Cap 258) were effective up to the payroll month Jan.2023. New NSSF rates (under the NSSF Act No. 45 of 2013) took effect from Feb. 2023, after the determination of a court case.
As at 01.o1.2023, the NHIF amount deducted in this computation is based on NHIF rates which took effect from 01.04.2015: https://bit.ly/3tdkO9c
Effective 01.07.2023, the amended Kenya Employment Act 2007 introduces a Housing Levy, deducted at 1.5% of the employee’s gross monthly pay, with the employer 100% matching the employee’s contribution as part of the total monthly levy contributions.
Effective 01.01.2022, Reliefs include Monthly Personal Relief of Kshs 2,400 + an NHIF Relief of 15% of an individual’s NHIF contribution. This is as per the provisions of the Kenya Finance Act 2021.
Allowable pension contributions other than NSSF (including NSSF contributions other than the statutory amount), mortgage interest on owner-occupier property, contributions to Home Ownership Savings Plans (HOSPs) (now defunct as per Kenya Finance Act 2020), insurance relief (other than the above NHIF relief), amongst others, have particular treatments in this PAYE computation. Feel free to contact us if you have queries on such applicable cases.