Kenya (KE)
Kenya is East Africa's economic, tech, and diplomatic powerhouse — home to the United Nations' Africa headquarters, the Silicon Savannah startup ecosystem, and some of the world's most iconic wildlife.
2026 Annual Changes — Kenya
Updated thresholds, benefits, and regulatory changes effective this year.
Kenya's 2026 year brings continued implementation of the Social Health Authority (SHA, formerly NHIF) and the reformed NSSF contribution tiers. The Finance Act 2025 introduced incremental changes to PAYE brackets, affordable housing levy, and digital services tax. Immigration services continue to be digitised via eCitizen. The Kenyan shilling has stabilised against USD following the 2024 currency crisis. Minimum wage received a statutory review in January 2026.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Minimum Wage Minimum wage was revised in November 2024 to KES 16,113.75/month for general unskilled workers in Nairobi — this rate carries into 2026 with no new gazette notice issued. (Previous rate KES 15,201 was in force before November 2024.) | KES 16,114/month (Nairobi general unskilled, effective November 2024 and carried into 2026). Agricultural workers: KES 6,000/month (Scheduled Territories). Check Wages Advisory Board gazette notice at labour.go.ke for sector-specific rates. | KES 15,201/month (2024 unskilled, Nairobi) | 2026-01-01 |
| SHA (Social Health Authority) Contribution SHA fully replaced NHIF as of October 2023. 2026 sees continued implementation with expanding facility network and benefits coverage under the three-fund structure (Emergency, Chronic & Critical Illness, Primary Healthcare Fund). | 2.75% employee contribution + 2.75% employer contribution of gross salary. Minimum: KES 300/month for informal/voluntary contributors. | NHIF: flat-rate contributions by income band (max KES 1,700/month). SHA introduced proportional rates. | 2023-10-01 |
| NSSF Contributions (Tier System) NSSF Act 2013 reformed contribution structure now being enforced after 2024 court challenge resolution. Tier I and Tier II contributions significantly higher than old flat-rate scheme. | Tier I: KES 540 employee + KES 540 employer (on first KES 9,000 of earnings — lower band increased from KES 8,000 effective February 2026). Tier II: 6% employee + 6% employer on earnings from KES 9,001 to KES 108,000. Maximum monthly total contribution: approx. KES 6,480 per person. | Tier I: KES 480 each on first KES 8,000 (prior to February 2026); flat KES 200 each before 2024 | 2024-02-01 |
| Affordable Housing Levy Housing Levy enforced for both employees and self-employed. Initially challenged in court, upheld and operational from 2024. | 1.5% of gross salary (employee) + 1.5% (employer match). Self-employed: 1.5% of gross income. | New in 2023 — no previous equivalent | 2024-03-01 |
| PAYE Income Tax Top Rate Finance Act 2023 introduced two new higher income tax bands (32.5% and 35%) above KES 6,000,000/year. These remain in force for 2026. | 35% on income above KES 9,600,000/year (KES 800,000/month). 32.5% on KES 6,000,001–9,600,000/year. | 30% was the top rate before Finance Act 2023 changes | 2023-07-01 |
| Digital Services Tax (DST) Digital Services Tax (DST) on digital marketplace transactions maintained at 1.5% of gross transaction value. Applies to platforms (Bolt, Uber, e-commerce) and digital content providers operating in Kenya. | 1.5% of gross transaction value on digital marketplace services | DST introduced Finance Act 2021 at 1.5% | 2023-01-01 |
| eTA (Electronic Travel Authorisation) Kenya replaced most visa categories with an eTA system for international travellers from January 2024. The EAC visa-free zone remains. eTA processing fee and requirements standardised. | USD 30 eTA fee for most nationalities. 90-day entry. Apply at etakenya.go.ke. From 25 May 2026: free eTA for citizens of approximately 40 countries including USA, UK, Germany, France, Australia, Canada, Japan, China, India, South Korea, and others — verify current list at immigration.go.ke. EAC citizens (Uganda, Tanzania, Rwanda, Burundi, South Sudan, DRC): visa-free. | Multiple visa categories (single entry, transit, East Africa Tourist Visa) with different fee structures | 2024-01-03 |
| KRA iTax System Enhancements KRA continued enhancement of iTax for mandatory digital filing. Withholding tax agents must file monthly returns electronically. Enhanced enforcement of compliance requirements. | All tax returns must be filed via iTax (itax.kra.go.ke). Penalty for late filing: KES 2,000 for individuals, 5% of tax due (whichever is higher). | iTax has been operational since 2013, enforcement gradually increasing | 2026-01-01 |
| Nairobi Expressway Toll The Nairobi Expressway toll (Mombasa Road – Westlands) remains operational. Toll rates reviewed for 2026 with minor adjustment for inflation. | Category A (small vehicle/motorcycle): KES 100–150. Category B (passenger car): KES 200–550. Category C (large vehicle): KES 400–1,100 depending on entry/exit point. | KES 100–500 (2023 launch rates) | 2026-01-01 |
| Fuel Prices (EPRA Regulated) Energy and Petroleum Regulatory Authority (EPRA) reviews pump prices monthly. KES-USD exchange rate and global oil prices drive fluctuations. | Super Petrol: KES 185–215/litre (range based on monthly review). Diesel: KES 175–205/litre. Check EPRA (epra.go.ke) for current monthly price. | KES 175–195/litre Super Petrol (2024 average) | 2026-01-01 |
| KRA Compliance Enforcement and Filing Deadlines KRA has significantly increased enforcement activity since 2023. Annual individual income tax return deadline, monthly PAYE, VAT and withholding deadlines are strictly enforced with escalating penalties. | Annual income tax return (individuals): 30 June 2026 (for 2025 income). Monthly PAYE/WHIT remittance: 9th of each month. Late filing penalty: KES 2,000/month or 5% of tax due (whichever is higher). Tax Compliance Certificates required for government contracts and work permit renewals. | — | 2026-01-01 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Check your payslip for new PAYE, SHA, NSSF, and Housing Levy deduction rates from January
- 2
Update your KRA iTax profile if your income or employment status has changed in the new year
- 3
Renew your annual road licence (NTSA sticker) before it expires
- 4
Renew vehicle inspection certificate if due
- 5
Review your private health insurance plan and SHA membership status
- 6
Confirm your work permit renewal date — start the renewal process 3 months before expiry
- 7
Check AMREF Flying Doctors membership renewal date
- 8
Review NSSF contribution deductions on your payslip match the current Tier I + Tier II rates
- 9
File previous year income tax return reminder — due 30 June
- 10
Review house lease renewal date — give notice 60 days before if moving
Where to Track Annual Changes
-
Kenya Revenue Authority — kra.go.ke (tax changes, iTax updates)
-
National Treasury — National Budget Statement (released annually in June)
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NSSF — nssf.or.ke (contribution rate updates)
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Social Health Authority — sha.go.ke (health coverage updates)
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Immigration Department / eCitizen — ecitizen.go.ke (visa, permit updates)
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Energy and Petroleum Regulatory Authority — epra.go.ke (fuel prices, monthly)
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Ministry of Labour Gazette Notices (minimum wage reviews)
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NTSA — ntsa.go.ke (driving, vehicle, transport regulation updates)
Kenya's fiscal and social policy environment changed significantly between 2022 and 2025 — the SHA (NHIF replacement), reformed NSSF tiers, Housing Levy, new PAYE top rates, and the eTA system are all relatively recent. Staying on top of compliance requirements is important. The Kenya Revenue Authority has significantly increased enforcement activity since 2023 — ensure all KRA obligations are met on time. The KES strengthened significantly against USD in late 2024 (from KES 160 to ~KES 130/USD) after economic stabilisation — budget planning should account for continued currency fluctuation.
Annual Changes
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