If your gross salary is KSh 80,000, roughly KSh 22,000 of it never reaches your account. Here's exactly where it goes in 2026, in the order your payroll computes it.
1. NSSF — the pension (6%, tiered)
Since February 2026, NSSF is in Year 4 of the NSSF Act 2013 phase-in:
- Tier I: 6% of your first KSh 9,000 → up to KSh 540
- Tier II: 6% of pay between KSh 9,001 and KSh 108,000 → up to KSh 5,940
Your employer matches every shilling, so the money going into your pension is double what you see deducted. On KSh 80,000: 540 + 6% × 71,000 = KSh 4,800. Try your own number in the NSSF calculator.
2. SHIF — health insurance (2.75%)
The Social Health Insurance Fund (which replaced NHIF in October 2024) takes a flat 2.75% of gross with a KSh 300 minimum and no cap. On KSh 80,000 that's KSh 2,200. The SHIF calculator does the arithmetic for any salary.
3. Affordable Housing Levy (1.5%)
The AHL is 1.5% of gross, matched by your employer. On KSh 80,000: KSh 1,200.
4. PAYE — income tax on what's left
Here's the part most people get wrong: since the Tax Laws (Amendment) Act 2024, NSSF, SHIF and the housing levy are all deducted before tax. Your taxable income on KSh 80,000 is:
80,000 − 4,800 − 2,200 − 1,200 = KSh 71,800
PAYE then applies in bands: 10% up to 24,000, 25% to 32,333, 30% to 500,000 (higher bands of 32.5% and 35% exist for large salaries). Subtract the KSh 2,400 personal relief and the tax comes to KSh 13,923.
The bottom line
| Item | Amount |
|---|---|
| Gross | 80,000.00 |
| NSSF | −4,800.00 |
| SHIF | −2,200.00 |
| Housing Levy | −1,200.00 |
| PAYE | −13,923.35 |
| Net pay | 57,876.65 |
That's a 27.7% total deduction rate. To see the same breakdown for your own salary — updated for the 2026 rates — use the KRA PAYE net-pay calculator. And if you're moving that salary around afterwards, the M-Pesa charges calculator shows what Safaricom takes on each transfer.
Rates verified July 2026. Statutory rates change — treat this as an estimate, not payroll advice.