Kenya payroll compliance involves four interlocking statutory obligations: KRA PAYE, NSSF contributions, SHA levies and the National Industrial Training Authority levy. Each has its own calculation base, rate and monthly deadline. This article explains each obligation in detail and sets out the compliance requirements every Kenya employer needs to meet.
Quick facts: Kenya payroll statutory obligations
- KRA PAYE applies at progressive rates; due by 9th of the following month
- NSSF contributions apply to all employees under the NSSF Act 2013
- SHA (Social Health Authority) replaced NHIF from October 2023; rate is 2.75% of gross pay
- NITA levy is KES 50 per eligible employee per month
- All four obligations are remitted through the KRA iTax portal by the 9th of the following month
KRA PAYE – Pay As You Earn
KRA PAYE is a withholding tax deducted from each employee’s taxable pay and remitted to the Kenya Revenue Authority. Taxable pay is gross pay minus NSSF employee contribution and any approved pension deductions. The personal relief of KES 2,400 per month reduces the PAYE payable for resident employees. Non-resident employees pay a flat 15% on their Kenyan-source income with no personal relief. The employer withholds PAYE and files a monthly employer return with payment through KRA iTax by the 9th of the following month.
NSSF – National Social Security Fund
NSSF contributions are mandatory for all employees. Both the employee and employer contribute at the applicable rate under the NSSF Act 2013. Contributions are collected monthly and remitted to NSSF by the 9th of the following month. NSSF protects employees against risks including old age, invalidity and survivorship.
SHA – Social Health Authority
The Social Health Insurance Act 2023 replaced NHIF with the Social Health Authority from October 2023. SHA contributions are 2.75% of gross pay (no cap). The employee bears the contribution; the employer deducts it from payroll and remits it monthly. SHA funds the Social Health Insurance Fund (SHIF) for universal health coverage in Kenya.
NITA – National Industrial Training Authority
NITA levy applies to eligible employers at KES 50 per employee per month. It funds industrial and vocational training programmes in Kenya. Bergmont Employer of Record Limited manages NITA remittance as part of the monthly payroll cycle for eligible employer categories.
Compliance Summary Table
| Obligation | Rate / Amount | Who bears it | Remittance deadline |
|---|---|---|---|
| KRA PAYE | Progressive rates (10%-35%) on taxable pay; personal relief KES 2,400/month | Employee; withheld and remitted by employer | 9th of following month |
| NSSF | Per NSSF Act 2013 (tiered) | Employee and employer (matched contributions) | 9th of following month |
| SHA | 2.75% of gross pay | Employee; employer deducts and remits | 9th of following month |
| NITA | KES 50 per eligible employee per month | Employer only | Monthly |
How Bergmont Employer of Record Limited Manages Kenya Payroll Compliance
- Monthly KRA PAYE calculated with correct progressive rates and personal relief applied per employee; employer return filed and payment remitted by the 9th
- NSSF contributions calculated and remitted monthly for all employees
- SHA contributions applied at 2.75% of gross; remitted monthly
- NITA levy applied and remitted for eligible employer categories
- Annual KRA employer return filed by 30 June; reconciles PAYE deducted vs chargeable income per employee
Frequently Asked Questions
What is the KRA personal relief in Kenya?
Resident employees are entitled to a personal relief of KES 2,400 per month (KES 28,800 per year). This is deducted from the gross PAYE liability calculated on taxable income. Non-resident employees are not entitled to personal relief.
Are SHA contributions calculated on basic wage or gross pay?
SHA contributions are calculated on gross pay (total earnings including allowances), not just basic wage. There is no cap on the SHA contribution amount.
What happens if an employer misses the 9th-of-the-month deadline?
Late remittance of KRA PAYE attracts a penalty of 25% of the tax due and interest at 1% per month until paid. Late NSSF or SHA payments also attract penalties. Bergmont Employer of Record Limited files and remits before the 9th on every monthly payroll cycle.
About Bergmont Employer of Record Limited
Registered Company Name: Bergmont Employer of Record Limited
Address: Mercantile House, Koinange Street 2nd floor, Office 202, P.O Box 4979-00200, Nairobi, Kenya
BRS: PVT-BEUE3LMJ | KRA PIN: P052386396W
Website: kenyadeployments.com
PAYE, NSSF, SHA and NITA together define the Kenya monthly payroll compliance cycle. Bergmont Employer of Record Limited manages all four obligations for every employer it serves in Kenya, ensuring the 9th-of-the-month deadline is never missed.
Reviewed by: Africa Deployments Compliance Team
