Our Methodology.
Salary Sasa operates on a high-fidelity financial engine. This page documents the statutory rules, sources, and verification logic used for the Q4 2026 period.
Statutory Rates & Sources
| Deduction | Rate (Late 2026) | Source / Authority |
|---|---|---|
| PAYE (Income Tax) | Banded (10% to 35%) | KRA iTax |
| SHIF (Health) | 2.75% (Min KES 300) | SHA Portal |
| Housing Levy | 1.5% (Gross) | Finance Act 2026 |
| NSSF Tier I | 6% of KES 9,000 | NSSF Act |
Calculation Logic (Step-by-Step)
Gross Reduction
We calculate NSSF, SHIF, and AHL first. These are "Allowable Deductions," meaning they reduce your taxable income.
Banded Taxation
Standard KRA bands (10%, 25%, 30%, 32.5%, 35%) are applied to the remaining "Net Taxable Pay."
Relief Application
Monthly Personal Relief of KES 2,400 is subtracted from the raw tax to arrive at the final PAYE payable.
Verified Test Cases
To verify the engine, you can cross-reference these expected results for October 2026:
Assumptions & Exclusions
Assumptions: Our engine assumes a standard monthly pay cycle for a salaried household in Kenya. Calculations are based on the individual being the primary income earner with standard residency status.
Exclusions: This illustrative utility does not currently factor in optional reliefs such as Owner-Occupier Interest (Mortgage), Insurance Relief (Life/Health outside SHIF), or secondary pension contributions beyond mandatory NSSF. For complex filings, consult a certified public accountant.
Maintenance & Updates
The Kenyan tax landscape is dynamic. We monitor three specific triggers for engine updates:
- Annual Finance Act: Reviewed every June/July. (Last Review: July 2026)
- Gazette Notices: Specifically for NSSF Tier progression and SHIF adjustments.
- Public Notices: iTax portal changes or deadline extensions.