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Originally published by Kenyanstop
September 12, 2025
2h ago
How KRA Calculates PAYE Tax on Your Payslip

Pay As You Earn (PAYE) is the tax that employers deduct from an employee’s pay monthly...
✨ Key Highlights
The Kenya Revenue Authority (KRA) outlines how Pay As You Earn (PAYE) tax is calculated on employee payslips in Kenya, detailing the tax bands and deductions. Employers are mandated to deduct and remit this tax monthly.
- PAYE is charged on various forms of income including wages, salaries, bonuses, and certain non-cash benefits.
- Current monthly PAYE tax bands (effective July 1, 2023) range from 10 percent on the first Ksh24,000 to 35 percent for income above Ksh800,000.
- A personal tax relief of Ksh2,400 per month (Ksh28,800 annually) is available to resident taxpayers, reducing the payable PAYE.
- Employers must file PAYE returns and remit the tax to KRA by the 9th day of the following month.
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