Kenya Tax Reliefs 2026 — Reduce Your PAYE Legally
Most Kenyan employees pay more tax than they need to. There are six legal reliefs that can reduce your monthly PAYE — some by up to KES 20,000 per month. Here is every one, explained clearly.
Max monthly savings
KES 44,400+
Using all available reliefs
Personal relief
KES 2,400/mo
Automatic — no action needed
Mortgage relief max
KES 9,000/mo
At 30% rate on KES 30K interest
All Available Tax Reliefs — 2026
Personal Relief
✓ Auto-appliedKES 2,400 per month is automatically deducted from your calculated PAYE tax — not from your income. Every Kenyan taxpayer gets this regardless of salary level.
Example
If your calculated PAYE is KES 8,000, personal relief reduces it to KES 5,600.
Requirements
Automatic for all registered taxpayers with a KRA PIN
Mortgage Interest Relief
Monthly mortgage interest payments on a qualifying home loan reduce your taxable income by up to KES 30,000 per month. At 30% PAYE rate, this saves up to KES 9,000 in tax per month.
Example
If you pay KES 25,000/month in mortgage interest, your taxable income is reduced by KES 25,000 — saving approximately KES 7,500 in PAYE per month at the 30% band.
Requirements
The property must be your primary residence. The loan must be from a licenced financial institution. You must not have used this relief on another property.
How to Claim
Pension Contribution Relief
Contributions to a KRA-approved pension or provident fund reduce your taxable income by up to KES 30,000 per month. This is in addition to your mandatory NSSF deduction.
Example
Contributing KES 20,000/month to an approved pension saves approximately KES 6,000 in PAYE per month (at 30% rate). Your pension grows while reducing your tax bill.
Requirements
Must be to a registered and KRA-approved pension scheme (RBA-registered). Your employer's occupational scheme or personal pension like LAPF or Jubilee Life qualifies.
How to Claim
Insurance Premium Relief
You receive a tax credit of 15% of qualifying insurance premiums paid, up to a maximum credit of KES 5,000 per month. This reduces your PAYE — not your income.
Example
Paying KES 20,000/month in qualifying insurance premiums gives a tax credit of KES 3,000 (15% × 20,000). Paying KES 40,000+ gives the maximum credit of KES 5,000.
Requirements
Must be for life insurance, education insurance, or health insurance for yourself, spouse, or children. Must be paid to a KRA-approved insurance company.
How to Claim
Disability Relief
Registered Persons with Disability (NCPWD card holders) receive an additional tax exemption of KES 150,000 per month on taxable income, effectively making income up to this amount tax-free.
Example
On a KES 100,000 salary, a registered PWD pays zero PAYE as all taxable income is covered by the disability relief exemption plus personal relief.
Requirements
Must hold a valid National Council for Persons with Disabilities (NCPWD) registration card. Submit the card number and a copy to your employer.
How to Claim
HELB Loan Repayment Deduction
✓ Auto-appliedHigher Education Loans Board (HELB) loan repayments are deductible from your taxable income, reducing PAYE. However, the primary impact is reducing take-home pay — the tax benefit is limited.
Example
KES 5,000/month HELB repayment reduces taxable income by KES 5,000, saving approximately KES 1,500 in PAYE (at 30% rate).
Requirements
Must be repaying an active HELB loan. Deductions are typically handled through salary-based enforcement by HELB.
Potential Monthly Tax Savings by Salary Level
Below are indicative savings when claiming mortgage interest, pension contributions, and insurance reliefs at different salary levels.
| Gross Salary | Mortgage Interest | Pension | Insurance | Est. PAYE Saved |
|---|---|---|---|---|
| Ksh 50,000 | Ksh 0 | Ksh 10,000 | Ksh 5,000 | Ksh 4,500/mo |
| Ksh 100,000 | Ksh 25,000 | Ksh 20,000 | Ksh 15,000 | Ksh 17,250/mo |
| Ksh 200,000 | Ksh 30,000 | Ksh 30,000 | Ksh 20,000 | Ksh 21,500/mo |
| Ksh 300,000 | Ksh 30,000 | Ksh 30,000 | Ksh 30,000 | Ksh 22,500/mo |
Estimates only. Actual savings depend on your marginal tax rate. Use the full calculator for exact figures.
Most Missed Relief: Mortgage Interest
The mortgage interest relief is the single biggest tax-saving opportunity for most middle-income Kenyans — worth up to KES 9,000 per month in PAYE savings — yet thousands fail to claim it. From 2026, employers must apply it automatically once you submit your mortgage statement. Many still do not know this. If you have a home loan, submit your bank statement to HR today.
Calculate your savings with mortgage relief