PAYE, Fringe Benefit Tax, NHIF, NSSF and Housing Levy parameters for 2024.
PAYE rates in effect from 1 July 2023:[1]
Monthly Taxable Pay (Ksh) | Annual Taxable Pay (Ksh) | Rate of Tax (%) |
---|---|---|
Up to 24,000 | Up to 288,000 | 10.0 |
24,001 - 32,333 | 288,001 - 388,000 | 25.0 |
32,334 - 500,000 | 388,001 - 6,000,000 | 30.0 |
500,001 - 800,000 | 6,000,001 - 9,600,000 | 32.5 |
Above 800,000 | Above 9,600,000 | 35.0 |
PAYE rates in effect from 1 January 2021 up to 30 June 2023:
Monthly Taxable Pay (Ksh) | Annual Taxable Pay (Ksh) | Rate of Tax (%) |
---|---|---|
Up to 24,000 | Up to 288,000 | 10 |
24,001 - 32,333 | 288,001 - 388,000 | 25 |
Above 32,333 | Above 388,000 | 30 |
Other PAYE parameters:
Monthly Limit (Ksh) | Annual Limit (Ksh) | Effective Since | |
---|---|---|---|
Personal Relief | 2,400 | 28,800 | 25 April 2020 |
Insurance Relief | 5,000 | 60,000 | 1 January 2007 |
Allowable Pension Fund Contribution | 20,000 | 240,000 | 1 January 2006 |
Allowable HOSP Contribution | 0 | 0 | 1 January 2021 |
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 |
As from 1 January 2022 NHIF contributions qualify for insurance relief.
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 2024 as published by KRA:
Quarter | Interest Rate (%) |
---|---|
January to March | 15 |
April to June | - |
July to September | - |
October to December | - |
Market interest rates for 2023:
Quarter | Interest Rate (%) |
---|---|
January to March | 9 |
April to June | 10 |
July to September | 11 |
October to December | 13 |
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 |
Under the NSSF Act of 2013, 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, subject to the following monthly limits.
February 2024 onwards:
Tier | Pensionable Pay |
---|---|
I | Up to 7,000 |
II | 7,001 - 36,000 |
Up to January 2024:
Tier | Pensionable Pay |
---|---|
I | Up to 6,000 |
II | 6,001 - 18,000 |
Starting 1 July 2023, the employer and employee are each required to pay 1.5% of monthly gross salary as Affordable Housing Levy.
[1] These PAYE rates and the housing levy were introduced in the Finance Act of 2023. Though the effective date for both of them was meant to be 1 July 2023, operation of the entire act was suspended by the courts until 28 July 2023.