Statutory and legislative payroll changes in Kenya, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
NSSF maximum monthly contribution set at KES 6,480
Effective 1 February 2026
From 1 February 2026 employers deduct a maximum monthly NSSF contribution of KES 6,480 from employees and match the same amount.
For the employer
- Match employee NSSF deduction up to KES 6,480 per month.
For the employee
- Maximum monthly NSSF deduction KES 6,480.
In practice: Maximum combined monthly contribution: KES 6,480 x 2 = KES 12,960.
Source: PwC Worldwide Tax Summaries - Kenya, Individual, Other taxes · Last verified 1 October 2026
Finance Act 2026: gratuity exemption limited to 31% of emoluments
Effective 1 July 2026
From 1 July 2026, gratuity qualifies for tax exemption only if the contract of service is for at least three continuous years (or an extension of a three-year contract) and the gratuity does not exceed 31% of emoluments earned in that period.
For the employer
- Confirm the contract runs at least three continuous years before treating gratuity as exempt in PAYE.
- Tax any gratuity above 31% of emoluments for the contract period through PAYE.
For the employee
- Gratuity within the 31% limit on qualifying three-year contracts is tax-exempt.
Source: Kenya Revenue Authority - Finance Act 2026: what it means for you · Last verified 1 October 2026
Individual income tax returns due by end of fourth month
Effective 1 January 2027 Upcoming
From 1 January 2027, individual taxpayers will be required to file income tax returns by the last day of the fourth month after the end of the year of income.
For the employer
- Expect staff on calendar-year income to file by 30 April from 1 January 2027.
For the employee
- File the annual individual return by the last day of the fourth month after the year of income ends (30 April for calendar-year filers).
Source: Kenya Revenue Authority - Finance Act 2026: what it means for you · Last verified 1 October 2026