How does the Consolidated Relief Allowance (CRA) work in Nigeria?

Under Nigeria's Personal Income Tax Act (PITA), CRA grants a tax-free allowance equal to the higher of ₦200,000 or 1% of gross income, plus 20% of gross income, significantly reducing the taxable base.

What are the new statutory levies on Kenyan payroll in 2026?

In addition to KRA PAYE and NSSF pension (6%), Kenyan employees are subject to the Social Health Insurance Fund (SHIF at 2.75% of gross pay) and the Affordable Housing Levy (1.5% of gross pay).

Nigeria & Kenya PAYE Salary Tax Guide 2026

PAYE Tax and Statutory Deductions in Nigeria and Kenya (2026): From Gross Salary to Net Pay

Detailed walkthrough of payroll taxes in Anglophone Africa's major economies: Nigeria's PITA Consolidated Relief Allowance (CRA) vs Kenya's new SHIF, Housing Levy, and KRA PAYE bands.

Simulequa Emerging Markets Desk

Verified Author

Statutory Payroll & Fiscal Research

Published17 September 2026

Read time9 min

Navigating Statutory Payroll Rules in Nigeria and Kenya

As two primary economic engines of Sub-Saharan Africa, Nigeria and Kenya maintain distinct statutory payroll models that impact formal sector take-home pay.

1. Nigeria: PITA & The Consolidated Relief Allowance (CRA)

Under the Personal Income Tax Act (PITA):

Pension (PenCom): Mandatory 8% employee deduction calculated on basic salary, housing, and transport.
Consolidated Relief Allowance (CRA): The higher of ₦200,000 or 1% of gross income + 20% of gross income is completely exempted from income tax.
Tax Brackets: Progressive rates from 7% (first ₦300k) to 24% (amounts exceeding ₦3.2m).

Kenya's payroll has evolved with recent statutory additions:

NSSF (Pension): Tier I & II capped contributions.
SHIF (Social Health Insurance Fund): Flat 2.75% of gross salary replacing the legacy NHIF.
Affordable Housing Levy: 1.5% of gross salary without any statutory ceiling.
KRA PAYE Brackets: Progressive rates from 10% to 35%, offset by a Personal Relief of KES 2,400 per month (KES 28,800 annually).

3. Comparing Deductions: A Mid-Level Professional

In Nigeria, CRA acts as a powerful buffer, lowering effective tax rates on a ₦500,000 monthly salary to under 12%.
In Kenya, cumulative social charges (NSSF + SHIF + Housing Levy) deduct approximately 7% to 9% from gross pay prior to KRA income tax.

Model your net earnings accurately using our dedicated calculators: