Casual Employee Tax in Kenya

📅 Last updated: 13 November 2026 • 🛡️ Rates checked: 20 October 2026 (Subject to KRA confirmation) • 🏛️ Sources: KRA, NSSF, SHA

In Short: Kenya Casual Worker Tax (2026)

Under Section 2 of the Employment Act 2007, a casual employee is engaged and paid on a day-to-day basis. If a casual worker’s aggregate monthly wages exceed the taxable threshold of KES 24,000, they are subject to standard progressive PAYE tax. Employers must maintain daily muster rolls and remit statutory deductions.

Employing casual laborers for temporary construction, agricultural, or event work carries strict legal obligations. Utilizing a verified PAYE calculator ensures that casual payroll complies with Kenya Revenue Authority guidelines.

Casual worker tax calculator

Enter the agreed daily wage and total days worked in the month below to compute monthly gross earnings, check statutory thresholds, and determine net pay.

Casual Payroll Estimator

Daily Wage Rate (KES)

Number of Days Worked in Month

Include Statutory Deductions (NSSF, SHIF, Housing Levy)

Net Take-Home Pay

KES 23,454.40

Monthly Gross: KES 26,400.00

Casual Monthly Breakdown (2026 Rates)
Description	Amount (KES)
NSSF Contribution	-KES 1,584.00
SHIF Contribution (2.75%)	-KES 726.00
Affordable Housing Levy (1.5%)	-KES 396.00
PAYE Income Tax	-KES 0.00

At KES 26,400 monthly, earnings are subject to statutory deduction reducing taxable income.

When does a casual worker pay PAYE?

Under KRA regulations, casual employees become subject to PAYE tax whenever their monthly earnings exceed KES 24,000. If an employee earns below this threshold, their calculated tax before relief does not exceed the KES 2,400 statutory personal relief, resulting in zero tax due. Check current brackets on PAYE tax bands and learn employer compliance steps on our filing PAYE returns guide.

Frequently Asked Questions

Who qualifies as a casual employee under Kenyan labor law?

Under Section 2 of the Employment Act 2007, a casual employee is an individual whose terms of engagement provide for payment at the end of each day and who is not engaged for longer than 24 hours at a time.

When does a casual employee pay PAYE in Kenya?

A casual employee is subject to PAYE when their aggregate monthly earnings exceed the statutory taxable threshold of KES 24,000, or when they work continuously for more than one month.

Does an employer deduct NSSF and SHIF from casual workers?

Yes. Under the NSSF Act and Social Health Insurance Act regulations, employers must register all workers and deduct statutory contributions regardless of permanent or casual status.

How does a casual worker differ from an independent contractor?

A casual worker is directed in their day-to-day duties and treated as an employee subject to labor protections and PAYE. A contractor operates an independent trade, issues commercial invoices, and is subject to 5% Withholding Tax.

What records must an employer keep for casual employees?

Employers are legally required to maintain a daily muster roll recording employee names, identity card numbers, days worked, daily wage rates, and any statutory tax deductions.