💰 Business & Money Documents

How to Make a Payslip with Correct 2026 Statutory Deductions in Kenya (2026)

The pain: Many payslip templates online still use old NHIF bands and superseded NSSF limits, so your net pay is wrong.

The outcome: A transparent payslip that shows earnings, every statutory deduction at the current 2026 rate, and the correct net pay.

SHIF is 2.75% of gross (min KSh 300, no cap), NSSF is 6% each side with an employee max of KSh 6,480, and the Housing Levy is 1.5% employee plus 1.5% employer.

Do it with LeadAfrik — free

Payslip Generator →

Produce a payslip with PAYE, NSSF, SHIF 2.75% and the 1.5% Housing Levy worked out and shown separately, as a clean PDF. Free.

KRA Tax Calculator →

Check PAYE, NSSF, SHIF and Housing Levy figures against the current 2026 rates. Free.

The 2026 statutory deductions (verify)

Deduction	Current figure (verify)	Note
PAYE	Bands 10 / 25 / 30 / 32.5 / 35%	Personal relief KSh 2,400/month
NSSF (Year 4, from Feb 2026)	6% each side; employee max KSh 6,480	LEL 9,000 / UEL 108,000, steps up yearly
SHIF / SHA	2.75% of gross (min KSh 300, no cap)	Replaced NHIF from Oct 2024
Affordable Housing Levy	1.5% employee + 1.5% employer	In force since 19 Mar 2024

Fill-in template: payslip

Employer name, address, PIN
Employee name, ID/staff no., KRA PIN, job title
Pay period | Pay date
EARNINGS: Basic | House allowance | Transport | Other allowances | Overtime | GROSS PAY
STATUTORY DEDUCTIONS: PAYE | NSSF (employee) | SHIF/SHA 2.75% | Housing Levy 1.5%
Personal relief applied (KSh 2,400)
OTHER DEDUCTIONS: SACCO | loan | advance
Total deductions | NET PAY (figures + words)
Employer contributions (info): NSSF employer | Housing Levy 1.5%
Payment method / bank / M-Pesa

Common mistakes to avoid

Using old NHIF bands instead of SHIF at 2.75% of gross.
Using superseded NSSF limits, when you must now use the Year 4 (Feb 2026) figures.
Forgetting the Affordable Housing Levy, or applying it to only one side.
Not showing each statutory deduction separately, or omitting personal relief on PAYE.

Ready to act? Use these free tools

Payslip Generator →

Produce a payslip with PAYE, NSSF, SHIF 2.75% and the 1.5% Housing Levy worked out and shown separately, as a clean PDF. Free.

KRA Tax Calculator →

Check PAYE, NSSF, SHIF and Housing Levy figures against the current 2026 rates. Free.

Questions people ask

What is the SHIF deduction rate in Kenya for 2026?

SHIF (SHA) is 2.75% of gross pay, with a minimum of KSh 300 and no cap. It replaced NHIF from October 2024.

What is the NSSF employee deduction in 2026?

From the Year 4 tier effective February 2026, NSSF is 6% each side with an employee maximum of KSh 6,480, based on a lower limit of 9,000 and an upper limit of 108,000.

How much is the Affordable Housing Levy on a payslip?

1.5% from the employee and 1.5% from the employer. It has been in force since 19 March 2024 and must be applied to both sides.

Keep it current: PAYE bands, NSSF tiers, SHIF and the Housing Levy all change with the Finance Act and the annual NSSF step-up. Confirm current rates on kra.go.ke and nssf.or.ke before finalising any payslip.

Official sources

📄 Personal Finance & Money-SaversBank loan documentsA complete document pack, a clean CRB, healthy statements, and enough affordability headroom to get approved faster and cheaper.🧾 Business & Money DocumentsKRA tax invoice (eTIMS)A valid eTIMS tax invoice with the CU serial, CU invoice number and scannable QR code that your customers can claim against tax.📝 Business & Money DocumentsProfessional quotationA clear priced offer with a validity date and stated VAT terms that converts to a sales order and then a proper eTIMS invoice.

Free

Free tools, templates & the Kenya money brief

New free tools, ready-to-use templates, and the numbers that move Kenyan money — in your inbox. Free, no spam.

No spam. Unsubscribe any time.

← All practical guides for Kenya