Kenya payroll compliance requires monthly PAYE filing with KRA through iTax, NSSF and NHIF/SHA contribution management, and Housing Levy remittance since January 2024. Africa Deployments manages the full Kenya payroll cycle for companies with a registered Kenyan entity, ensuring accurate statutory deductions, on-time KRA filings, and Employment Act 2007-compliant pay records every month.
Quick facts: payroll Kenya at a glance
- PAYE: Progressive up to 35% on monthly income above KES 800,000
- NSSF: KES 2,160 employer + KES 2,160 employee per month (Tier I + II)
- NHIF/SHA: Revised contributions under Social Health Authority (2024)
- Housing Levy: 1.5% employer + 1.5% employee of gross monthly salary
- Annual leave: 21 working days per year
- Maternity leave: 3 months; employer-funded
What Is Payroll Outsourcing in Kenya?
Payroll outsourcing in Kenya transfers monthly KRA PAYE iTax filing, NSSF and SHA contribution remittance, Housing Levy deduction, and Employment Act-compliant payslip management to a specialist provider. For companies with a Kenyan entity that want payroll compliance handled by an expert East Africa partner, Kenya payroll outsourcing from Africa Deployments covers the full monthly cycle plus annual P9 reconciliation.
Kenya Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Governing law | Employment Act 2007 |
| PAYE | Progressive up to 35% (monthly income above KES 800,000) |
| NSSF | KES 2,160 employer + KES 2,160 employee per month |
| NHIF/SHA | Revised SHA contribution schedule (effective 2024) |
| Housing Levy | 1.5% employer + 1.5% employee of gross monthly salary |
| Tax authority | Kenya Revenue Authority (KRA) |
| Annual leave | 21 working days per year |
| Maternity leave | 3 months; employer-funded |
Payroll, Tax and NSSF Compliance in Kenya
Kenya employers file monthly PAYE returns through the Kenya Revenue Authority (KRA) iTax portal. PAYE is progressive from 10% on monthly income between KES 24,001 and KES 32,333 to 35% on income above KES 800,000. NSSF contributions under the NSSF Act 2013 are currently KES 2,160 per month each for employer and employee (Tier I and Tier II combined). The Affordable Housing Levy, introduced in 2024, is 1.5% employer and 1.5% employee on gross monthly salary. SHA (Social Health Authority) replaced NHIF in 2024 with a revised contribution schedule based on gross income. Annual P9 forms are issued to all employees at year-end for individual tax return purposes.
Why Companies Choose Africa Deployments for Payroll in Kenya
- Monthly KRA PAYE iTax filing and remittance in Kenyan shillings (KES)
- NSSF monthly contribution computation and remittance
- SHA contribution management under the 2024 Social Health Authority framework
- Housing Levy (1.5%/1.5%) calculation and KRA remittance
- Africa Deployments holds its own Kenya entity for in-country payroll management
Frequently Asked Questions
What are Kenya’s PAYE rates?
Kenya PAYE is progressive: 10% on monthly income from KES 24,001 to KES 32,333; 25% from KES 32,334 to KES 500,000; 30% from KES 500,001 to KES 800,000; and 35% on income above KES 800,000 per month.
What is Kenya’s Housing Levy?
The Affordable Housing Levy is 1.5% employer and 1.5% employee on gross monthly salary, introduced in 2024. It is remitted monthly to KRA alongside PAYE.
What replaced NHIF in Kenya?
The Social Health Authority (SHA) replaced NHIF in 2024. SHA contributions are assessed on gross income with a revised contribution schedule that varies by income level.
What annual leave is required in Kenya?
Kenya’s Employment Act 2007 entitles employees to 21 working days of paid annual leave per year, with female employees entitled to 3 months of employer-funded maternity leave.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Website: africa-deployments.com
Kenya payroll now incorporates PAYE, NSSF, SHA, and the Affordable Housing Levy – four distinct monthly obligations across multiple KRA filing streams. Africa Deployments, with its own Kenya entity, provides the specialist payroll outsourcing service that international businesses need to keep their Kenyan workforce compliantly paid month to month.
Reviewed by: Africa Deployments Compliance Team
