KRA Reveals How Long Kenyans Must Wait to Receive PAYE Tax Refunds

Kenyans seeking refunds for excess Pay As You Earn (PAYE) deductions may have to wait up to six months before receiving their money, the Kenya Revenue Authority (KRA) has announced.

In a clarification issued on Wednesday, November 11, 2026, the tax authority said processing PAYE refund applications takes between 120 and 180 business days, depending on the nature of the claim.

The statement followed a complaint from a taxpayer who had applied for a refund in July but was still waiting for approval despite submitting all the required documents.

Responding to the concern, KRA explained that the application was still undergoing processing and promised to notify the applicant through their registered email address once a decision had been made.

The clarification has drawn attention to the procedures taxpayers must follow when seeking reimbursement for money deducted beyond their actual tax obligations.

Under KRA guidelines, employees qualify for PAYE refunds when the total tax deducted from their salaries exceeds their annual tax liability.

This can happen when workers change jobs during the year, work for fewer than 12 months or experience salary variations that result in excessive deductions.

Employees may also be entitled to refunds where eligible tax reliefs, including insurance relief, mortgage interest relief, pension contributions and personal relief, were not properly factored into their payroll calculations.

Applications are submitted through the iTax platform and must be supported by relevant documents, including P9 forms, payslips and certificates confirming eligibility for applicable reliefs.

KRA then examines the submitted information against tax records provided by employers. Applications involving inconsistencies, substantial amounts or additional verification may undergo audits, extending the processing period.

The authority can also deduct outstanding taxes, penalties and interest from approved refunds before releasing the remaining amount.

Under the Tax Procedures Act, applications are subject to statutory decision timelines. Where KRA fails to communicate a decision within the applicable period, the law provides for the application to be treated as approved.

For approved claims, the authority is required to make payment within six months, with interest provisions applying where payment is delayed.

Taxpayers whose applications are rejected have 30 days to lodge an objection through the iTax platform.

https://www.kenyans.co.ke/news/129298-kra-says-paye-tax-refunds-take-180-days-after-concerns

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