Employers in Kenya are responsible for deducting and remitting several statutory contributions from their employees. Getting this right protects both your staff and your business from penalties and interest.
PAYE
Pay As You Earn is income tax deducted from employees’ salaries at the prevailing rates and bands. PAYE is remitted to KRA by the 9th of the following month, with a monthly return filed on iTax.
NSSF
The National Social Security Fund deducts pension contributions at the graduated rates under the NSSF Act, 2013. Contributions are remitted by the 9th of the following month through the NSSF portal.
SHIF and Housing Levy
The Social Health Insurance Fund (SHIF) and the Affordable Housing Levy are deducted at the prescribed percentages of gross pay. Both are remitted monthly alongside other statutory deductions.
Common Pitfalls
Late remittance, incorrect rates and missing P9 forms at year-end are the most common compliance issues. Maintaining an accurate payroll register and working with a professional keeps these risks low.
Our payroll management service handles every deduction, filing and year-end requirement accurately and on time. If payroll compliance is consuming your time, let our team take it on.