PAYE Tax Rates In Kenya

This article highlights the new PAYE tax rates in Kenya effective 1^st July 2023. Pay As You Earn (PAYE) is a mandatory tax levied on all employees’ income by the Kenya Revenue Authority. All employers are required by the law to deduct PAYE from employees’ salaries and wages at the prevailing rates and remit the same to KRA on or before the 9^th of the following month.

PAYE is chargeable to persons of employment income of Kshs. 24,000 and above per month. PAYE returns are submitted online via iTax . If you have no PAYE to declare, you are required to submit a NIL return.

Income Tax Individual Tax Rates

For purposes of computing PAYE, an employer is required to apply the Individual Income Tax Rates (Bands) that range from 10% to 35% as per Finance Act 2023 as tabulated below (effective 1^st July 2023);

Monthly Pay Bands (Ksh.)	Annual Pay Bands (Ksh.)	Rate of Tax (%)
On the first Shs. 24,000	On the first Shs. 288,000	10
On the next Shs. 8,333	On the next Shs.100,000	25
On the next Shs. 467,667	On the next Shs. 5,612,000	30
On the next Shs.300,000	On the next Shs. 3,600,00	32.5
On all income above Shs. 800,0000	On all income above Shs. 9,600,000	35
Personal Tax Relief
2,400	28,800