New KRA PAYE tax rates 2021

KRA PAYE Tax Rates Effective January 2021

Tax Law (Amendment) act No 2 of 2020 was published on Dec 24th 2020. 

Consequently, there are changes to the monthly PAYE tax bands issued for COVID19 relief.

Below are the new monthly tax bands effective January 2021. For more information, read KRA article here.

Monthly Bands of Taxable Income (KES) Tax Rate
0 – 24,000 10%
On the next 8,333 25%
Remaining amount over 32,333 30%
Personal Relief: KES 2,400.00 per month
Minimum Taxable Income: KES 24,001.00 per month

For users of Wingubox Online Payroll Software, this formula will be automatically available in your account as well as older PAYE rates for 2020, 2018, 2017 through to 2007

Use our free PAYE tax calculator to see how your income has changed with the new act. 


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