Take a gross monthly salary of KES 100,000 and total up every statutory deduction that leaves the payslip. NSSF is 6% of pensionable pay at KES 6,000, SHIF is 2.75% of gross at KES 2,750, and the Affordable Housing Levy is 1.5% of gross at KES 1,500. Those three come off before PAYE, leaving taxable pay of KES 89,750, on which PAYE after the personal relief is KES 19,308.35.
Deduction
Amount (KES)
Share of gross
NSSF
6,000.00
6.0%
SHIF
2,750.00
2.8%
Housing Levy
1,500.00
1.5%
PAYE
19,308.35
19.3%
Total deductions
29,558.35
29.6%
Net pay
70,441.65
70.4%
Total deductions come to KES 29,558.35, about 29.6% of gross, so the employee keeps KES 70,441.65. The chart below shows how the KES 100,000 splits between net pay and the four deductions.
How it is calculated
This tool adds up the four mandatory deductions a Kenyan employer withholds and expresses each as a share of gross pay. NSSF is 6% of pensionable pay across two tiers but capped at KES 6,480 a month for the employee, so it flattens out once gross passes KES 108,000. SHIF replaced NHIF and is a straight 2.75% of gross with a KES 300 monthly floor. The Affordable Housing Levy is 1.5% of gross, matched by the employer. Because SHIF and the Housing Levy became allowable deductions in late 2024, they reduce the taxable pay before PAYE is calculated on the five KRA bands, and the KES 2,400 personal relief is then taken off the tax. The total deduction percentage rises with income as more pay falls into the higher PAYE bands, which is why a KES 100,000 earner loses about 30% while a lower earner loses noticeably less.
Frequently asked questions
What statutory deductions come off a Kenyan salary?
Four: NSSF (6% per tier, capped at KES 6,480), SHIF (2.75% of gross), the Affordable Housing Levy (1.5%), and PAYE on the bands after the personal relief. NSSF, SHIF and AHL also reduce the taxable pay before PAYE is calculated.
At what salary does NSSF stop increasing in Kenya?
NSSF is capped at KES 6,480 per month for the employee contribution. Once your gross salary passes the upper earnings limit (around KES 108,000 at the rates this calculator applies), the NSSF contribution flattens out. Any further increase in salary adds no extra NSSF, so the marginal deduction on earnings above that level is only SHIF, the Housing Levy, and PAYE.
How does SHIF differ from NHIF in Kenya?
The Social Health Insurance Fund replaced the National Hospital Insurance Fund and is calculated as 2.75% of gross monthly salary with no cap, subject to a KES 300 monthly floor. NHIF was a tiered flat amount that varied by income band. The switch to a percentage-based contribution means higher earners now pay proportionally more toward health cover than they did under the old NHIF bands.
Why does the total deduction percentage rise at higher salaries in Kenya?
SHIF and the Affordable Housing Levy are straight percentages of gross, so they scale with income. More importantly, PAYE is progressive, meaning each additional slice of income above a threshold is taxed at a higher rate. A KES 50,000 earner might lose around 20% of gross to all deductions combined, while a KES 200,000 earner can lose over 35%, because much of their income falls in the higher PAYE bands.