Skip to content
rollbee

Tax Relief & Deductions Calculator Kenya

How much PAYE can pension, mortgage interest or insurance save?

KES

Basic pay plus taxable cash allowances, before deductions.

KES

What you pay into a registered scheme each month, not counting NSSF.

KES

Per month.

KES

Life, education or health cover per month. Not SHIF.

KES

Interest per month on a loan for the home you live in.

The first KES 150,000 a month of income is tax-free.

Benefits and pay month
KES

Taxable value of a company car, housing or cheap loan.

Leave blank for the current NSSF rates.

Relief check

per month · 2026 rates
Now
Taxable pay89,750.00
PAYE−19,308.35
Net pay70,441.65
If you used every relief
Extra contributions72,333.33
PAYE would be2,608.35
Real cost after tax saved−55,633.33
Cash left each month14,808.32
PAYE you could saveKES 16,700.00
KES 200,400.00 a year

Living with a disability? With a KRA exemption certificate, up to KES 150,000 a month is tax-free.

Top tax band
30%
Reliefs save now
0
Pension limit
30,000

Room left under each limit, best return first

Pension

30.00 saved per 100
Using 6,000Limit 30,000
Room left
24,000
PAYE saved
7,200
Real cost
16,800

Registered pension or provident fund. NSSF counts towards the limit. Locked in until retirement.

Post-retirement medical fund

30.00 saved per 100
Using 0Limit 15,000
Room left
15,000
PAYE saved
4,500
Real cost
10,500

Registered post-retirement medical fund, deducted before PAYE.

Insurance premiums

15.00 saved per 100
Using 0Limit 33,333
Room left
33,333
PAYE saved
5,000
Real cost
28,333

Life, education or health policy premiums. You get 15% back against PAYE. Needs an insurer certificate.

Mortgage interest

Not something to increase
Claimed 0Limit 30,000
PAYE now and with every relief
Now19,308
Optimised2,608

How it's worked out

  1. Work out PAYE now from your salary and the pension, medical fund, mortgage interest and insurance you already pay.
  2. Measure each relief you use: recalculate PAYE without it. The difference is what that relief saves you.
  3. Find the room left under each limit: pension up to the lower of 30% of pay or KES 30,000 (NSSF included), medical fund up to KES 15,000, and insurance premiums up to KES 33,333 (the point where 15% relief hits KES 5,000).
  4. Fill each gap on its own and recalculate PAYE. Tax saved divided by the extra contribution gives the saving per KES 100, which sets the ranking.
  5. Real cost is the extra contribution minus the tax it saves. Filling every gap together shows the most you can save and the cash you'd have left.

Monthly limits for 2026

Relief or deductionLimit per month (KES)
Pension and provident funds, with NSSFLower of 30% of pay or 30,000
Post-retirement medical fund15,000
Mortgage interest (home you live in)30,000
Insurance relief (15% of premiums)5,000
Disability exemption (with KRA certificate)150,000 of income

Pension and medical fund money is locked in until retirement, and insurance relief needs a certificate from your insurer. This is not financial advice.

Questions people ask

How much pension contribution is tax-deductible in Kenya?

The lowest of your actual contributions (including NSSF), 30% of your pensionable pay, or KES 30,000 a month. NSSF counts towards the limit, so someone paying the full KES 6,480 NSSF can deduct up to KES 23,520 more.

What is the post-retirement medical fund deduction?

Contributions to a registered post-retirement medical fund are deducted from pay before PAYE, up to KES 15,000 a month. It replaced the old relief on 27 December 2024.

How does insurance relief work?

You get 15% of qualifying life, education or health premiums back against PAYE, up to KES 5,000 a month (KES 60,000 a year). That cap is reached at premiums of about KES 33,333 a month. SHIF contributions don't qualify.

Can I claim mortgage interest?

Yes. Up to KES 30,000 a month of interest is deductible on a loan from a recognised lender to buy, build or improve the one home you live in.

Why does extra pension save me nothing?

Reliefs can only reduce PAYE to zero. If personal relief already covers your tax, or your contributions are already at the limit, putting in more doesn't lower your tax.

Sources

Rates last checked 13 Sep 2026. Estimates only, not tax or legal advice.