How income tax works in Kenya
Kenya taxes residents on worldwide employment and business income. Presence tests run 183 days, permanent-home presence, or 122-day three-year averaging.
Yearly PAYE bands run 10% to KES 288,000, 25% to KES 388,000, 30% to KES 6 million, 32.5% to KES 9.6 million and 35% above. Resident relief of KES 28,800 yearly comes off computed tax.
Housing levy of 1.5% each side, health insurance of 2.75% and pension of 6% each side leave pay alongside PAYE. Employers remit monthly through iTax by the 9th.
Income tax brackets in Kenya
| Bracket | Rate | Notes |
|---|---|---|
| Up to KES 288,000 | 10% | Before relief and payroll levies |
| KES 288,001 to KES 388,000 | 25% | Before relief and payroll levies |
| KES 388,001 to KES 6,000,000 | 30% | Before relief and payroll levies |
| KES 6,000,001 to KES 9,600,000 | 32.5% | Before relief and payroll levies |
| KES 9,600,001 and above | 35% | Top PAYE rate |
Tax rates at a glance
- Entry rate
- 10%To KES 288,000
- Second rate
- 25%
- Main rate
- 30%
- Upper rates
- 32.5% / 35%
- Pension max
- KES 6,480/mo
- Yearly relief
- KES 28,800
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsHigh earnersCross-border workers
Watch out for
- Levies are not in the band table. Housing, health and pension deductions add roughly ten points to every effective rate.
- Pension ceilings jumped in February 2026. Guides quoting KES 72,000 upper limits and KES 4,320 maxima describe the old phase.
- Insurance relief caps at KES 5,000 monthly against PAYE. Health payments above the cap buy cover, not tax relief.
- Non-resident employment is taxed on Kenyan work only. Short assignments should check treaty days before assuming full PAYE.
Frequently asked questions
Do expats pay income tax in Kenya?
Yes, if resident or working in Kenya. Residents pay on worldwide employment income while short stayers pay on Kenyan work.
What is the top income tax rate in Kenya?
35% above KES 9.6 million yearly, before housing, health and pension levies that add about ten points more.
How much is tax-free in Kenya?
KES 28,800 yearly of relief wipes out tax on the first slice, with pension and housing deductions lowering taxable pay further.
What payroll levies apply in Kenya?
Affordable housing 1.5% each side, health insurance 2.75%, and pension 6% each side to high ceilings.