Statutory Deductions in Kenya (2026)
NSSF, SHIF, and the Housing Levy: the three mandatory deductions that come out of every Kenyan payslip in 2026.
Before PAYE is even worked out, three deductions are taken from almost every Kenyan payslip by law. They are NSSF (your pension), SHIF (health, which replaced NHIF), and the Affordable Housing Levy. Together they can take a meaningful slice of gross pay, and two of them (NSSF and the housing levy) also reduce the income your PAYE is charged on.
For 2026 the headline figures are: NSSF at 6% of pensionable pay up to an upper limit of KES 108,000, so a maximum of KES 6,480 a month; SHIF at 2.75% of gross pay with no cap; and the Housing Levy at 1.5% of gross, matched by your employer. The guides below break each one down in full, with worked examples.
Guides in this topic
See it on your own salary
Run your own figures and get an exact 2026 breakdown for PAYE, NSSF, SHIF, the Housing Levy and your net take-home.
Calculate your NSSF deductionCommon questions
What are the statutory deductions in Kenya for 2026?
NSSF (6% of pensionable pay, maximum KES 6,480/month), SHIF (2.75% of gross pay, replaced NHIF), and the Affordable Housing Levy (1.5% of gross, matched by the employer). PAYE is then calculated on the balance after NSSF and the housing levy are deducted.
Which deductions reduce my PAYE?
NSSF contributions and the Housing Levy are deductible before PAYE is calculated, so they lower your taxable income. SHIF is not deducted before PAYE, but it does attract a 15% insurance relief that reduces the tax due.
Is SHIF really 2.75% of my whole salary?
Yes. SHIF replaced NHIF in 2024 and is charged at a flat 2.75% of gross pay with no upper limit, unlike the old banded NHIF table. Someone earning KES 100,000 pays KES 2,750 a month.