How to reduce PAYE in Kenya: legal tax-saving calculator
See how much tax you save each month and year with pension top-ups, insurance relief and mortgage interest.
Rules to meet: pension in a registered scheme, a qualifying insurer, and a mortgage on a home you live in. Keep the certificates.
Get this set up properlyThe reliefs, in plain terms
- Pension: contributions to a registered scheme, including NSSF, are deductible up to KES 30,000 a month.
- Insurance relief: 15% of premiums for qualifying policies, capped at KES 5,000 a month, comes off your tax.
- Mortgage interest: interest on a loan for a home you occupy is deductible up to KES 30,000 a month.
- Personal relief: KES 2,400 a month, given automatically.
- Housing Levy: there is no separate relief for it, but your own 1.5% is deducted before tax.
This is the simple case for a resident employee. Pension saved is not lost, since it stays in your retirement fund, so the net cash cost is lower than the figure suggests.
Start with the PAYE calculator to see your base tax, then read the PAYE bands guide to understand how each relief works and the new return deadlines for when to claim.
Common questions
Is this tax avoidance?
No. These are reliefs written into the Income Tax Act. They only apply if you meet the conditions and can show proof.
Who claims the relief?
Your employer can apply some through payroll, and you can claim the rest on your annual return on iTax.
Does disability change anything?
Yes. A person with a disability certificate from the relevant council can have the first KES 150,000 a month exempt. This tool does not include that.
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Ask for helpEstimates for guidance only, not tax advice. Rates were checked in October 2026 and can change. Confirm with KRA or a qualified professional.