Kenyan employers have until Monday, November 9, 2026, to file and remit their October Pay As You Earn (PAYE) taxes, with the Kenya Revenue Authority (KRA) warning that failure to meet the deadline will attract penalties and interest.
PAYE is a tax deducted by employers from employees’ salaries and other taxable employment benefits before being remitted to KRA. Under the Income Tax Act, employers are required to submit monthly PAYE returns and pay the tax deducted by the ninth day of the following month. This means October payroll deductions must be declared and paid by November 9.
Ahead of the deadline, KRA issued a nine point compliance checklist on Friday, November 6, to guide employers through the filing process. The guidance requires employers to verify payroll records, confirm employees’ KRA Personal Identification Numbers, review taxable benefits and allowances, and account for applicable deductions and tax reliefs. Employers are also expected to apply the correct income tax bands and reconcile their calculations against payroll records before submission.
Once the figures have been verified, employers should access the iTax portal, complete and submit their October PAYE returns, generate payment slips and settle the outstanding tax. KRA also requires employers with no PAYE to declare to submit nil returns to maintain compliance.
The financial consequences of missing the deadline differ depending on whether an employer fails to file or delays payment. According to KRA, late filing attracts a penalty of 25% of the tax due or Ksh 10,000, whichever is higher. Separately, late payment attracts a penalty of 5% of the outstanding tax, alongside interest of 1% per month or part of a month until the amount is fully paid.
Accuracy in calculating PAYE is also important following amendments introduced through the Finance Act, 2025. Employers are required to apply relevant deductions, reliefs and exemptions when determining employees’ taxable income. These include personal relief, eligible insurance relief, mortgage interest deductions and qualifying pension contributions, subject to statutory requirements and supporting documentation.
The simplified PAYE return introduced by KRA has also changed how employers submit their monthly declarations. Fully rolled out from July 1, 2025, the system allows employers to file returns according to their respective employee categories and integrates with government systems to facilitate tax and statutory contribution processing.
System availability remains another consideration for employers filing close to the deadline. In September 2026, KRA acknowledged intermittent iTax portal downtime affecting return filing and payment services. The authority subsequently announced a waiver of penalties and interest attributable to the verified period of disruption. Employers experiencing technical difficulties should document the errors and contact KRA through its official support channels for assistance.
With the October PAYE deadline falling on November 9, employers yet to complete their obligations should prioritize submitting their returns, settling the tax due and retaining their filing acknowledgements and payment confirmations. The next monthly PAYE deadline, covering November payroll, falls on Wednesday, December 9, 2026.
