Kenya

National Social Security Fund (NSSF) contributions

There are new NSSF rates that entered into effect on 1 February 2024. Employers are required to deduct a maximum of KES 2,160 from the employees and match the same. The contributions are payable on or before the ninth day of the following month.

National Hospital Insurance Fund (NHIF) contributions

Employees in Kenya are required to contribute to the NHIF. There is no corresponding employer contribution.

The contributions are graduated, with the maximum contribution currently being KES 1,700 per employee for employees earning more than KES 100,000 per month.

Affordable Housing Levy (AHL)

Effective 1 July 2023, employers will be required to deduct and remit the AHL at:

• 1.5% of the employee’s gross monthly salary for the employee, and
• 1.5% of an employee’s gross monthly salary for the employer.

Employers will be required to remit the levy not later than nine working days after the end of the month in which payments are due. 

Late remittance of the AHL will attract a penalty of 2% of the amount due for each month the payment remains unpaid.

Consumption taxes

Value-added tax (VAT)

VAT is levied at a standard rate of 16% on the supply of taxable goods and services in Kenya, as well as on the importation of taxable goods and services into Kenya. See the Other taxes section in the Corporate tax summary for reduced rates and additional information.