Government Issues Urgent Warning: Employers Risk Huge Penalties and Interests After the Set Deadline

KRA has warned employers to file and pay october 2026 PAYE taxes by November 9, 2026. The tax authority has declared that anyone who will fail to comply will be at a risk penalties and interest.

Photo of the president of Kenya His Excelency William Samoei Ruto

The tax authority has issue a nine-point checklist to help employers file correctly. Employers should verify payrol records, confirm employees’ KRA pins, and review taxable benefits such as allowances and bonuses.

They must also account for deductions and reliefs, apply the correct tax rates and cross check payrol calculations before filling through the itax portal.

PAYE applies to salaries, wages, comission, overtime, leave pay and other taxable benefits. Employer-provided housing and company vehicles are also taxable. For 2026, PAYE rates range from 10%to 35% depending on the amount of income.

Late filers to face a penalty of 25% of the tavx due or KSh.10000 whichever is higher. Late payment also attract a 5% and 1% monthly interest.

https://x.com/Kenyans/status/2118629290879356969?a=BLM6Fa9fN3HxnUJoI5c&s=09

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