Payroll Module · 2025/2026 Compliant

Automated Payroll for Kenyan Schools

Process staff salaries with confidence. Tiptons Analytics automatically calculates PAYE, NSSF (Phase 4), SHIF, Housing Levy, and HELB deductions using the latest 2025/2026 statutory rates from KRA, NSSF, and the Social Health Authority. Generate payslips, P9 forms, and remittance reports in minutes.

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Payroll Module

Statutory Deductions — Automatically Calculated

Tiptons Analytics stays current with all Kenyan statutory deduction rates. Every payroll run automatically calculates the correct amounts for PAYE, NSSF, SHIF, Housing Levy, and HELB based on each employee's gross earnings.

  • PAYE — 10% / 25% / 30% (progressive)
  • NSSF — 6% of pensionable earnings (Phase 4)
  • SHIF — 2.75% of gross salary
  • Housing Levy — 1.5% employee + 1.5% employer
  • HELB — Varies (typically KES 1,500–3,000/month)

Updated for 2025/2026 statutory rates · KRA Compliant · iTax compatible · P9 Ready

Payroll module overview
PAYE calculation
PAYE (Pay As You Earn)

Income tax, calculated band by band

Kenya Revenue Authority (KRA) — Filed via iTax by 9th of the following month.

PAYE is the income tax deducted from employees' salaries based on progressive tax bands. Tiptons Analytics calculates taxable income after subtracting tax-exempt allowances and pension contributions, then applies the correct band rates. The KES 2,400 monthly personal relief and any applicable insurance relief are automatically factored in.

2025/2026 PAYE Tax Bands

Monthly Taxable Income (KES) Tax Rate
0 – 24,00010%
24,001 – 32,33325%
Over 32,33330%
  • Personal Relief — KES 2,400 per month (KES 28,800 per year) is automatically deducted from the calculated tax.
  • Insurance Relief — 15% of premiums paid (max KES 5,000/month) is also supported where applicable.
NSSF — Phase 4 (Feb 2026)

NSSF contributions with two-tier structure

The National Social Security Fund Act mandates a phased increase in contribution rates over four years. From February 2026 (Phase 4), both employee and employer contribute 6% of pensionable earnings, up to a combined ceiling of KES 108,000. Contributions are split into two tiers: Tier I funds must go to the NSSF Trust Fund, while Tier II funds can be directed to NSSF or an approved private pension scheme.

Tier Pensionable Earnings Rate Max (Employee) Destination
Tier IUp to KES 9,0006%KES 540Must go to NSSF Trust Fund
Tier IIKES 9,001 – 108,0006%KES 5,940NSSF or approved private pension scheme
Total MaxUp to KES 108,0006%KES 6,480Per month (Phase 4, from Feb 2026)

All NSSF Tier I and Tier II contributions are reported per employee for submission through the NSSF online portal.

NSSF Phase 4 contribution structure
SHIF contribution
SHIF — Social Health Insurance Fund

Replacing NHIF — proportional, not fixed

SHIF replaced the National Hospital Insurance Fund (NHIF) effective October 2024 under the Social Health Authority. Unlike the old NHIF fixed bands, SHIF is calculated as a percentage of gross salary, making it proportional to income.

  • Contribution Rate — 2.75% of gross salary
  • Minimum — KES 300/month (floor for low-income earners)
  • Upper Cap — No cap; applies to full gross salary
  • Covers inpatient, outpatient, emergency, maternity, and chronic care
  • Replaced NHIF from October 2024 under the Social Health Authority (SHA)
Affordable Housing Levy

Employee and employer contributions, tracked together

The Affordable Housing Levy is a mandatory payroll deduction established under the Affordable Housing Act. Both the employer and employee contribute towards Kenya's affordable housing program.

  • Employee Rate — 1.5% deducted from gross salary
  • Employer Rate — 1.5% matched contribution by employer
  • Total — 3.0% combined, remitted monthly to the Housing Fund

Tiptons Analytics tracks both employee and employer portions and generates the combined remittance report for the Housing Fund portal.

Affordable Housing Levy
HELB deductions
HELB — Higher Education Loans Board

Variable deductions, configured per employee

For employees with outstanding HELB loans, Tiptons Analytics supports variable monthly deductions typically ranging from KES 1,500 to KES 3,000 per month, depending on the loan balance and repayment plan. The deduction amount is configured per employee and included on payslips and the HELB deduction schedule.

Staff Payslip

Professional PDF payslips, ready in seconds

Every payslip shows a complete breakdown of earnings, allowances, statutory deductions, and the final net pay.

February 2026

PDF
  • Basic SalaryKES 45,000
  • House AllowanceKES 10,000
  • Transport AllowanceKES 5,000
Gross Pay KES 60,000

Deductions

  • PAYE- KES 5,510
  • NSSF (Tier I + II)- KES 3,600
  • SHIF (2.75%)- KES 1,650
  • Housing Levy (1.5%)- KES 900
Net Pay KES 48,340
Professional PDF payslips
Professional Documents

Professional PDF Payslips

Generate clear, professional payslips for every staff member with a single click. Each payslip shows a complete breakdown of the employee's earnings, allowances, all statutory deductions, and the final net pay — giving staff full transparency into their compensation.

Payslips are branded with your school logo and can be downloaded as PDF files, printed for distribution, or shared electronically. The system maintains a complete payslip history for every employee, making it easy to reference past months for audits or employee inquiries.

  • Detailed earnings breakdown (basic salary + all allowances)
  • Line-by-line statutory deductions (PAYE, NSSF, SHIF, Housing Levy, HELB)
  • Year-to-date cumulative totals for each component
  • School branding with logo and institution name
  • Bulk generation for all staff in a single payroll run
  • Historical payslip archive for every employee
Compliance Reports

Statutory Reports & Tax Certificates

Generate all the reports your school needs for statutory compliance — from monthly remittance schedules to annual P9 certificates for KRA filing.

  • KRA — P9 Tax Deduction Certificate — Annual tax certificate for each employee showing total earnings, PAYE deducted, and personal relief claimed. Required for KRA annual tax returns via iTax.
  • NSSF — NSSF Monthly Report — Monthly schedule of all NSSF Tier I and Tier II contributions per employee, ready for submission through the NSSF online portal.
  • SHA — SHIF Remittance Report — Monthly Social Health Insurance Fund contributions schedule showing 2.75% deductions per employee, formatted for SHA eCitizen submission.
  • NHC — Housing Levy Report — Monthly report of Affordable Housing Levy deductions (1.5% employee + 1.5% employer) for submission through the Housing Fund portal.
  • HELB — HELB Deduction Schedule — Monthly schedule of HELB loan repayment deductions for employees with outstanding higher education loans.
  • Internal — Payroll Summary — Comprehensive monthly summary showing total gross pay, all deductions broken down by category, net pay, and employer contributions.
Statutory compliance reports
Staff compensation
Staff Compensation

Allowances, Advances & Bonus Management

Beyond basic salary and statutory deductions, Tiptons Analytics manages the full range of staff compensation. Configure multiple allowance types per employee, process salary advances with automatic recovery, and manage end-of-year bonuses — all integrated into the payroll calculation engine.

Allowances

  • House Allowance — Monthly housing benefit, taxable under PAYE
  • Transport Allowance — Commuter transport reimbursement
  • Hardship Allowance — For staff in remote or hardship areas
  • Responsibility Allowance — For Head of Department, class teachers
  • Leave Allowance — Annual leave encashment benefit
  • Medical Allowance — Additional health cover beyond SHIF

Salary Advances

  • Configurable advance limits per staff grade
  • Automatic installment recovery from salary
  • Advance balance tracking and reporting
  • Approval workflow for advance requests

Bonus Management

  • One-off or recurring bonus payments
  • Correct PAYE treatment for lump sums
  • Separate bonus payslip generation
  • Included in P9 annual totals
Payment Processing

Bank Payment Files

Generate formatted payment files for bulk salary transfers through your school's bank.

  • Run Payroll — Process the monthly payroll with all deductions automatically calculated
  • Generate File — Export the bank payment file in CSV or the format required by your bank
  • Upload to Bank — Upload the file to your bank's online portal for bulk salary disbursement

Compatible with all major Kenyan banks: Equity Bank, KCB Bank, Co-operative Bank, NCBA, Standard Chartered, Absa Kenya.

Bank payment files
Free Tool

Calculate teacher PAYE in 30 seconds

Enter a gross salary. Get PAYE, NSSF Tier I + II, SHIF, Housing Levy, and net take-home. Math shown band by band. Kenya 2026 rates.

Open PAYE Calculator
FAQ

Frequently Asked Questions

Common questions about Tiptons Analytics' payroll management features.

Tiptons Analytics handles PAYE (KRA), NSSF (Tier I & II, Phase 4 from February 2026), SHIF (Social Health Insurance Fund at 2.75%), the Affordable Housing Levy (1.5% employee + 1.5% employer), and HELB loan deductions. All are calculated automatically with the correct 2025/2026 rates.

From February 2026 (Phase 4), both employee and employer contribute 6% of pensionable earnings up to a combined ceiling of KES 108,000. Tier I covers earnings up to KES 9,000 (max KES 540 each side) and must go to the NSSF Trust Fund. Tier II covers earnings from KES 9,001 to KES 108,000 (max KES 5,940 each side) and can go to NSSF or an approved private pension scheme.

Yes. Tiptons Analytics generates branded PDF payslips for every employee, plus all statutory reports including KRA P9 annual tax certificates, NSSF monthly reports, SHIF remittance schedules, Housing Levy reports, and HELB deduction schedules.

Automate Your School Payroll

Stop calculating statutory deductions manually. Let Tiptons Analytics handle PAYE, NSSF, SHIF, and Housing Levy with the correct 2025/2026 rates — every month, automatically. Generate payslips and P9 forms in minutes.

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