Statutory rules

A statutory rule version holds the rates, bands, reliefs, limits and rounding that payroll uses for a range of months. Every pay run is linked to one rule version when the draft is created, and keeps it.

Go to Payroll → Rules.

Caution

TillPoint records payroll evidence. It does not file returns or pay authorities. The built-in rule version was set up from official Kenyan sources at the time of this release. Rates change, and how they apply to your pay lines depends on your business. Confirm the treatment with your accountant before you run live payroll, and again whenever an authority announces a change.

The built-in rule version

TillPoint ships one rule version, KE-2026-YEAR4, effective for payroll months from 1 February 2026 onward. Its card shows the date the sources were retrieved, links to each primary source, and the list of points the accountant must confirm.

Months before February 2026 are not covered. Payroll for those months cannot be created unless a separate rule version is added for them.

The version arrives Unconfirmed. No pay run can be created until it is confirmed for your business. See Confirm a rule version.

The figures below are those stored in KE-2026-YEAR4. A later rule version may hold different figures; the version linked to a run is shown on the run and on each payslip.

How a payslip is worked out

1. Gross cash is basic salary plus every line marked Cash earning.
2. Bases are worked out for NSSF, SHIF and the Housing Levy: basic salary plus the lines ticked for each. See Earnings and deductions.
3. NSSF, SHIF and the Housing Levy are calculated from those bases.
4. Taxable pay is basic salary plus Taxable lines, less the allowable deductions.
5. PAYE is calculated on taxable pay, then reliefs are taken off.
6. Net pay is gross cash less PAYE, employee NSSF, SHIF, employee Housing Levy and other deductions.

The payslip’s Server calculation bases & trace shows each of these figures.

PAYE

Monthly bands applied to taxable pay:

Monthly taxable pay	Rate
First Ksh 24,000	10%
Next, up to Ksh 32,333	25%
Next, up to Ksh 500,000	30%
Next, up to Ksh 800,000	32.5%
Above Ksh 800,000	35%

Allowable deductions reduce taxable pay before the bands are applied:

• Employee SHIF and employee Housing Levy.
• Pension: employee NSSF plus any REGISTERED_PENSION deduction, limited to the lower of Ksh 30,000 a month and 30% of pensionable income.
• POST_RETIREMENT_MEDICAL_FUND, up to Ksh 15,000 a month.
• MORTGAGE_INTEREST, up to Ksh 30,000 a month.

Reliefs are taken off the tax:

• Personal relief of Ksh 2,400 a month for every employee marked Kenyan tax resident. Non-residents receive none.
• Insurance relief for residents: 15% of any INSURANCE_PREMIUM deduction, up to Ksh 5,000 a month. SHIF does not count as insurance relief.

PWD exemption: where a valid exemption certificate covers the whole month, up to Ksh 150,000 of monthly taxable pay is exempt before the bands are applied.

PAYE never goes below zero.

SHA / SHIF

The employee pays 2.75% of the SHIF base, with a minimum of Ksh 300 a month. There is no employer contribution and no maximum. Late-payment penalties are not calculated.

Housing Levy

The employee pays 1.5% of the Housing Levy base and the employer pays another 1.5%. The employer share is a cost to the business and does not reduce net pay. There is no cap.

NSSF

Employee and employer each pay 6% of the NSSF base, up to the upper earnings limit of Ksh 108,000, across Tier I (up to the lower earnings limit of Ksh 9,000) and Tier II. The most each side pays is Ksh 6,480 a month. Contributions are rounded up to the next whole shilling.

Only Tier II remittance to NSSF is supported. Contracted-out Tier II is not.

The NSSF source is flagged Requires accountant/legal confirmation. Take current legal advice on the NSSF rates before confirming the rule version.

Rounding

Amounts other than NSSF are rounded to the nearest cent, with halves rounded up.

Confirm a rule version

You need Payroll rules manage, and you cannot confirm a rule version you created.

1. Have your accountant review the rule version, including the points listed on its card.
2. Select Record confirmation on the rule version.
3. Check the effective dates, the checksum, the full configuration and the sources.
4. Enter the Accountant review reference, for example a memo date or engagement reference.
5. Select Confirm rule version.

The card then shows Confirmed and the confirmation reference. Confirmation applies to your business only and to that exact version. It does not change the version.

Add a rule version

When an authority changes a rate, a new rule version is needed. A version in use is never edited.

1. Select Add rule version.
2. Enter the Version code, Effective from (the 1st of a month), optionally Effective to (optional, month end), and Sources retrieved on.
3. Under Official source evidence, complete the lines the form starts with: scheme codes PAYE, PWD_EXEMPTION, NSSF_RATES, NSSF_ROUNDING, SHIF and AHL. Each line needs an Authority, a Primary source URL and an Effective from date. Use Add source for more.
4. Enter the Calculation configuration (JSON).
5. Select Create rule version.

The configuration is technical; get help before adding one. See Getting help. A new version must be confirmed by a different person before payroll can use it.

Accountant checklist

Before confirming, the accountant should agree:

• which pay lines count towards SHIF, the Housing Levy and NSSF;
• whether each benefit is taxable, and its value;
• each employee’s residence, personal relief and PWD exemption evidence;
• the evidence and limits for pension, insurance, mortgage interest and post-retirement medical fund deductions;
• the NSSF Tier II destination and current legal position;
• final rounding and the format of statutory returns;
• the Housing Levy due date, which TillPoint leaves blank.