The Kenya Revenue Authority (KRA) has announced a major shift in how employers will file Pay As You Earn (PAYE) returns, with a streamlined new system set to take effect on July 1, 2025.
In a public notice issued on Monday, June 23, the tax authority said the updated filing process is designed to make PAYE submissions more straightforward and user-friendly across the board – for the public, private, and non-profit sectors.
The revamped system replaces the current filing method with a new Excel-based return template. This tool is part of KRA’s ongoing digital transformation efforts aimed at making tax compliance more efficient, transparent, and accessible.
By introducing the simplified format, KRA aims to minimize reporting errors, reduce filing burdens on employers, and encourage timely compliance. The move also supports broader reforms in tax administration to modernize Kenya’s revenue collection systems.
The new system will be fully integrated with major government platforms such as the Integrated Management Information System (iMIS) and the Central Bank of Kenya (CBK) through API connections. This will allow for automated deduction and remittance of key statutory contributions, including the Affordable Housing Levy, NITA Levy, and other PAYE-linked charges, all tailored to specific employee categories.
KRA has instructed all employers to adopt the new Excel template starting July 1. To help businesses transition smoothly, the authority has made the simplified return form and a sample CSV file available for download on its official website www.kra.go.ke, under the publications section.
Employers have been urged to update their payroll systems in line with the new requirements before the rollout date to avoid penalties and ensure full compliance.
