KRA Sets November 9 Deadline for Employers to File October PAYE Returns

The Kenya Revenue Authority (KRA) has given employers until Monday, November 9, 2026, to submit their October Pay As You Earn (PAYE) tax returns and settle outstanding payments, warning that late compliance will attract penalties and interest.

In a notice issued on Friday, November 6, the tax authority outlined nine key steps employers should follow to ensure accurate filing and avoid mistakes that could lead to additional costs.

KRA advised employers to begin by organising payroll records and confirming that all employees’ Personal Identification Numbers (PINs) are correctly captured in their records.

Employers are also required to review taxable employment benefits, including allowances, bonuses and other payments, before calculating the amount of tax payable.

The authority further directed businesses to factor in applicable deductions and reliefs, use the correct income tax bands and verify their calculations against payroll records.

After completing the process, employers should access the iTax platform, submit their October PAYE returns, generate payment slips and remit the required amounts.

KRA also emphasised the importance of downloading filing acknowledgement receipts and keeping payment confirmations for future reference.

Under Section 37 of the Income Tax Act, employers are legally required to deduct PAYE from employees’ salaries, wages, commissions, bonuses, overtime payments, allowances and other taxable benefits.

Additional benefits such as employer-provided housing and company vehicles must also be considered when determining an employee’s monthly tax liability.

For the 2026 tax year, PAYE rates range between 10 and 35 per cent, depending on an employee’s taxable monthly income. The first Ksh24,000 attracts 10 per cent, while earnings above Ksh800,000 are taxed at 35 per cent.

Employers who miss the filing deadline face a penalty of 25 per cent of the tax due or Ksh10,000, whichever is higher.

Late payments also attract a 5 per cent penalty, alongside monthly interest of 1 per cent on the outstanding amount.

https://www.kenyans.co.ke/news/129187-kra-issues-9-point-checklist-employers-ahead-november-9-paye-deadline

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