BUSINESS BASICS

 

Minimum Wage in Kenya
Effective 1 May 2026, Kenya's revised minimum wage rates apply to workers in Nairobi and other designated areas, as provided under Legal Notice No. 95.
This infographic summarises the applicable monthly minimum wage rates as listed as BASIC PAY, for selected occupations in Nairobi. Employee must add minimum 15% basic pay as Housing Levy. Total of Basic Pay and Housing Levy is the Total GROSS.

📌 Official Reference:
Kenya Gazette Supplement No. 128
29th May 2026
Legislative Supplement No. 78
Legal Notice No. 95
The Labour Institutions Act (Cap. 234)

For employers, investors and businesses operating in Kenya, understanding statutory labour costs is an important part of business planning, budgeting and compliance.

At ASTRA SOURCESS, we help investors and businesses navigate the practical realities of establishing and operating in Kenya.

From Investment Decision to Operational Business.



 

 

KENYA PAYROLL DEDUCTIONS | 2026
 

Managing payroll in Kenya involves more than simply paying salaries. Both employers and employees need to understand the statutory deductions and employer contributions that apply to employment income.
 

Our latest infographic provides a practical overview of the key payroll items for 2026, including:

🔹 PAYE (Income Tax): 10%–35% progressive rates
🔹 NSSF: Employee contribution according to the 2026 Year 4 rates
🔹 SHIF: 2.75% of gross salary
🔹 Affordable Housing Levy (AHL): 1.5% of gross salary from the employee
🔹 NITA Levy: KES 50 per employee per month — paid by the employer and NOT deducted from the employee's salary


Why does this matter?
 

For Employers:
Accurate payroll management helps maintain compliance, avoid unnecessary penalties and calculate the true cost of employment.


For Employees:
Understanding your payslip helps you know exactly what is deducted from your salary and why.


For Investors:
Statutory payroll costs are an important component when assessing labour costs, business models and investment opportunities in Kenya.
 

At ASTRA SOURCESS, we believe that understanding the practical realities of doing business in Kenya is essential to making sound investment and operational decisions.
 

Compliant People. Stronger Businesses.
From Investment Decision to Operational Business.