KSh2,400 PAYE Relief: What Kenyan Workers Need to Know About Their Salaries

Kenyan employees are watching changes to income tax closely, as even a small adjustment to payroll deductions can affect the money available for rent, food, transport and other household expenses.

However, claims that the government has scrapped the KSh2,400 monthly personal tax relief need clarification. The Kenya Revenue Authority (KRA) still lists the relief in its PAYE guidelines, meaning eligible resident employees continue to benefit from it under the current rules.

Personal relief reduces the income tax an eligible worker pays each month. It is worth KSh2,400 monthly, or KSh28,800 annually, and is applied when employers calculate Pay As You Earn (PAYE).

Without this relief, an employee who pays enough income tax could face an increase of up to KSh2,400 in monthly tax, depending on their circumstances. That would amount to KSh28,800 over a full year. However, this is a hypothetical calculation, not a confirmed change in the law.

The issue comes as the government considers changes intended to reduce PAYE deductions for lower-income earners. Proposals reported in September 2026 included exempting workers earning KSh30,000 or less per month from PAYE and reducing the tax rate for those earning between KSh30,000 and KSh50,000.

The proposals were not yet law at the time of those reports. Treasury had planned public participation before moving the measures through Parliament.

For now, workers should distinguish between proposed tax reforms and changes that have officially taken effect. Employers must calculate PAYE using the applicable tax bands and reliefs, while KRA requires them to apply relevant deductions and reliefs when determining employees’ tax.

Employees concerned about their take-home pay can check their payslips to confirm that personal relief has been applied where they qualify. They can also seek clarification from their employer’s payroll department if deductions appear different from previous months.

Any confirmed removal or amendment of the relief would need to be reflected in the relevant legal changes and official tax guidance.

Until such a change is confirmed, Kenyan workers should not assume that the KSh2,400 monthly personal relief has been scrapped.

Source: https://x.com/citizentvkenya/status/2113520743632064715?s=20

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