The Kenya Revenue Authority (KRA) has introduced modifications to the method of submitting Pay As You Earn (PAYE) returns by employers, introducing a simplified course of that may change into necessary beginning July 1, 2025.
In a public discover dated June 23, 2025, KRA stated the transfer is geared toward enhancing the person expertise and aligning the submitting course of with suggestions obtained from taxpayers.
The simplified course of is predicted to profit all employers, together with these within the public, personal, and not-for-profit sectors.
“The Kenya Revenue Authority (KRA) has simplified the PAYE return submitting and fee course of following suggestions from taxpayers. The modifications intention to boost person expertise for employers throughout public, personal, and not-for-profit sectors,” the discover learn partially.
New Updates within the KRA System
According to the authority, the simplified PAYE return system permits employers to file returns primarily based on worker classes.
At the identical time, it integrates with authorities programs, together with the Integrated Financial Management Information System (IFMIS), the Central Bank of Kenya (CBK).
It can also be built-in with a Human Resource Information System through an Application Programming Interface (API).
KRA additionally famous that the brand new system helps automated deductions and funds for PAYE, Affordable Housing Levy, NITA Levy, and different labour-related obligations.
The tax authority has requested employers to familiarize themselves with the brand new template and start adjusting their payroll processes accordingly to keep away from last-minute challenges.
“KRA appreciates the suggestions from taxpayers and can proceed to execute industry-specific options that help tax compliance,” the discover added.
Step-by-Step Filing Process
For employers submitting their returns, step one is to obtain the Simplified Excel PAYE Return Template.
The template might be accessed by way of the KRA web site at the place employers can obtain the Excel template and pattern CSVs.
Then, fill in related payroll info as guided by the template.
Categories are designed to align with completely different employment varieties.
On the opposite hand, employers can hyperlink their programs with KRA’s by way of APIs for automated processing and submission.
Validate and Submit Returns
Use the simplified type to validate the information and submit your returns by way of the KRA platform or built-in programs.
Once submitted, employers can seamlessly pay due quantities together with PAYE, housing levy, and different contributions.
For inquiries and additional steering, employers are suggested to contact KRA’s buyer care middle through Tel: 020 4 999 999 or 0711 099 999 or e-mail [email protected].
The necessary use of the simplified template begins July 1, 2025. Employers are urged to modify to the brand new format early to keep away from last-minute errors or penalties.
