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Paye as You Earn (Paye) Tax Rates in Kenya – KRA

PAYE tax rates for individuals for the year 2019 are as follows:

AnnualMonthlyPAYE Rates
On the firstShs. 147,580Shs. 12,29810%
On the nextShs. 139,043Shs. 11,58715%
On the nextShs. 139,043Shs. 11,58720%
On the nextShs. 139,043Shs. 11,58725%
On all Income OverShs.564, 709Shs. 47,05930%

Taxation for Non- Resident?s Employment Income

Any amount paid to Non-Resident individuals in respect of any employment with or services rendered to an employer who is resident in Kenya or to a permanent establishment in Kenya is subject to income tax charged at the prevailing individual income tax rates.

Non?Residents are however not entitled to any personal relief.

How do I file for Individual Income Tax Returns?

An individual income tax return is a declaration of income earned by an individual within a particular year.

Every individual with a KRA PIN is required to file this return.

You can file your Individual Income Tax Returns for a particular year of income, anytime between 1st January to 30th June of the following year.

Monthly Limit (Ksh)Annual Limit (Ksh)Effective Since
Personal Relief1,40816,8961st January 2018
Insurance Relief5,00060,0001st January 2007
Allowable Pension Fund Contribution20,000240,0001st January 2006
Allowable HOSP Contribution4,00048,0001st January 1999
Owner Occupier Interest25,000300,0001st January 2017
Disability Exemption150,0001,800,00010th March 2010

Other PAYE parameters:

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 2019 as published by KRA:

QuarterInterest
Rate (%)
January to March7
April to June7
July to September7
October to December

Market interest rates for 2019:

QuarterInterest
Rate (%)
January to March8
April to June8
July to September8
October to December8

NHIF

NHIF rates in 2019

Gross Pay (Ksh)Deduction (Ksh)Gross Pay (Ksh)Deduction (Ksh)
Up to 5,99915040,000 – 44,9991,000
6,000 – 7,99930045,000 – 49,9991,100
8,000 – 11,99940050,000 – 59,9991,200
12,000 – 14,99950060,000 – 69,9991,300
15,000 – 19,99960070,000 – 79,9991,400
20,000 – 24,99975080,000 – 89,9991,500
25,000 – 29,99985090,000 – 99,9991,600
30,000 – 34,999900100,000 and above1,700
35,000 – 39,999950

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