NAIROBI, Kenya, June 24 – The Kenya Revenue Authority (KRA) has announced a simplified Pay As You Earn (PAYE) return filing and payment process in a move aimed at enhancing user experience and easing tax compliance for all employers across the public, private, and not-for-profit sectors.
The simplified Excel-based PAYE return tool, which will become mandatory for all employers starting July 2025, introduces a more streamlined approach that is expected to significantly reduce the administrative burden previously associated with monthly PAYE returns.
Under the improved filing system, employers will now be able to file returns based on the specific categories of their employees, improving accuracy and efficiency.
“Kenya Revenue Authority (KRA) has simplified the PAYE return filing and payment process to align with feedback received from taxpayers. The simplified process facilitates employers to file returns relevant to their categories of employees,” KRA stated.
KRA has also invested in digital integration to ensure seamless filing and payment.
The simplified PAYE return is now linked to key government systems, including the Integrated Financial Management Information System (IFMIS), the Central Bank of Kenya (CBK), and the Government Human Resource Information System (GHRIS), through robust API connections.
This integration enables simultaneous processing of PAYE, the Affordable Housing Levy, NITA Levy, and other statutory deductions.
According to KRA, these reforms are part of ongoing efforts to modernise tax administration and provide industry-specific solutions that support voluntary compliance.
The authority reaffirmed its commitment to partnering with employers and stakeholders to continuously improve service delivery and tax systems.
