TSC Explains Why Teachers’ PAYE in June Was Highest
The Teachers Service Commission (TSC) has moved to explain the increased Pay As You Earn (PAYE) deductions that appeared in the June 2026 payroll.
TSC ascribed the modifications to the rectification of a payroll system glitch that caused an inaccurate tax calculation.
The commission stated that teachers had expressed concerns about modifications made to PAYE deductions in their June wages.
TSC stated that the problem emerged during the implementation of measures in Section 7 of the Tax Laws (Amendment) Act, 2024.
The Act altered the Income Tax Act to exempt employee payments to the Affordable Housing Levy (AHL) Fund and the Social Health Insurance Fund (SHIF) from income taxation.
Statement on Adjustment of Pay As You Earn (PAYE) in June 2026 payroll for TSC employees pic.twitter.com/zvW2Scg1HO— TSC (@TSC_KE) June 25, 2026
To comply with the law, the Integrated Personnel and Payroll Database (IPPD) system was reconfigured to apply the new tax exemptions for TSC employees.
However, the commission said an unintended anomaly occurred during the reconfiguration process.
According to TSC Acting Commission Secretary and Chief Executive Officer Eveleen Mitei, National Social Security Fund (NSSF) contributions, which had already been configured as tax-exempt in the payroll system, were inadvertently re-captured for tax relief purposes.
“During the system reconfiguration process, an unintended anomaly occurred whereby, in addition to AHL and SHIF contributions, National Social Security Fund (NSSF) contributions, which had already been configured as tax-exempt in the payroll system, were inadvertently recaptured for tax relief purposes,” she said.
“This resulted in the application of a duplicate tax relief on NSSF contributions for all TSC employees.”
The anomaly was later detected during routine payroll reviews, prompting the commission to take corrective action in the June 2026 payroll for both teachers and secretariat staff.
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“Consequently, the PAYE deductions were adjusted to align with the correct tax computation as provided for under the law,” Mitei added.
The commission emphasized that the June adjustments were not the introduction of a new tax or deduction but rather a correction aimed at ensuring compliance with tax regulations and accurate salary processing going forward.
“The PAYE adjustment reflected in the June 2026 payroll arose from the correction of the payroll system configuration and was necessary to ensure accurate computation of Pay As You Earn deductions going forward,” Mitei added.
TSC expressed regret over any concern or inconvenience caused by the adjustments and thanked employees for their understanding.
“The Commission regrets any inconvenience or concern that this adjustment may have caused to TSC employees and appreciates their understanding,” she said.
The clarification comes after teachers across the country raised questions over changes in their June payslips, with many reporting higher PAYE deductions compared to previous months.
TSC Explains Why Teachers’ PAYE in June Was Highest
