The Kenya Revenue Authority (KRA) has introduced modifications to the procedure for submitting Pay As You Earn (PAYE) reports by employers, implementing an easier method that will be obligatory beginning July 1, 2025.
On June 23, 2025, KRA announced in an official statement that this change is intended to improve user satisfaction and adjust the submission procedure according to input gathered from tax contributors.
The streamlined procedure is anticipated to advantage all employers, covering those from the public, private, and non-profit industries.
"The Kenya Revenue Authority (KRA) has streamlined the PAYE return submission and payment procedure based on input from taxpayers. These modifications are designed to improve the overall ease of use for employers in both the public, private, and non-profit sectors," according to the notification.
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Latest Changes in the KRA System
As per the authorities, the streamlined PAYE return process enables employers to submit filings categorized according to their employees.
Simultaneously, it connects with governmental systems such as the Integrated Financial Management Information System (IFMIS) and the Central Bank of Kenya (CBK).
It is likewise connected to a Human Resource Information System through an Application Programming Interface (API).
KRA further indicated that the updated system facilitates automated deductions and payments for PAYE, Affordable Housing Levy, NITA Levy, as well as various other labor-related responsibilities.
The taxation department has requested that employers acquaint themselves with the updated form and start modifying their salary procedures to prevent potential difficulties at the last minute.
"KRA values the input from taxpayers and will keep implementing sector-focused strategies to aid in tax compliance," the notification stated additionally.
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Step-by-Step Filing Process
The initial step for employers submitting their returns is to download the Simplified Excel PAYE Return Template.
The template can be found on the KRA website. https://www.kra.go.ke/publications Where employers can obtain the Excel template and example CSV files.
Next, complete the required payroll details following the guidance provided by the template.
Categories are created to correspond with various employment types.
Alternatively, businesses have the option to integrate their systems with those of KRA using APIs, facilitating automated processing and submissions.
Validate and Submit Returns
Utilize the streamlined version for verifying information and filing submissions via the KRA portal or linked systems.
After submission, employers can easily make payments for the outstanding balances which include PAYE, housing levy, as well as various contributions.
For questions and additional assistance, employers should reach out to KRA’s customer support team through Tel: 020 4 999 999 or 0711 099 999, or send an email to callcentre@kra.go.ke.
Starting from July 1, 2025, the compulsory adoption of the streamlined template will come into effect. It is recommended for employers to make the transition to the new format well ahead of time to prevent potential last-minute mistakes or fines.
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