The Kenya Revenue Authority (KRA) has announced changes to the process of filing Pay As You Earn (PAYE) returns by employers, introducing a simplified process that will become mandatory starting July 1, 2025.
In a public notice dated June 23, 2025, KRA said the move is aimed at enhancing the user experience and aligning the filing process with feedback received from taxpayers.
The simplified process is expected to benefit all employers, including those in the public, private, and not-for-profit sectors.
“The Kenya Revenue Authority (KRA) has simplified the PAYE return filing and payment process following feedback from taxpayers. The changes aim to enhance user experience for employers across public, private, and not-for-profit sectors,” the notice read in part.
Also Read: Finance Committee Rejects Proposal to Grant KRA Access to Personal Data
New Updates in the KRA System
According to the authority, the simplified PAYE return system allows employers to file returns based on employee categories.
At the same time, it integrates with government systems, including the Integrated Financial Management Information System (IFMIS), the Central Bank of Kenya (CBK).
It is also integrated with a Human Resource Information System via an Application Programming Interface (API).
KRA also noted that the new system supports automatic deductions and payments for PAYE, Affordable Housing Levy, NITA Levy, and other labour-related obligations.
The tax authority has asked employers to familiarize themselves with the new template and begin adjusting their payroll processes accordingly to avoid last-minute challenges.
“KRA appreciates the feedback from taxpayers and will continue to execute industry-specific solutions that support tax compliance,” the notice added.
Also Read: KRA Announces Job Opportunities for Kenyans; How to Apply
Step-by-Step Filing Process
For employers filing their returns, the first step is to download the Simplified Excel PAYE Return Template.
The template can be accessed through the KRA website at https://www.kra.go.ke/publications where employers can download the Excel template and sample CSVs.
Then, fill in relevant payroll information as guided by the template.
Categories are designed to align with different employment types.
On the other hand, employers can link their systems with KRA’s through APIs for automatic processing and submission.
Validate and Submit Returns
Use the simplified form to validate the data and submit your returns through the KRA platform or integrated systems.
Once submitted, employers can seamlessly pay due amounts including PAYE, housing levy, and other contributions.
For inquiries and further guidance, employers are advised to contact KRA’s customer care center via Tel: 020 4 999 999 or 0711 099 999 or email [email protected].
The mandatory use of the simplified template begins July 1, 2025. Employers are urged to switch to the new format early to avoid last-minute errors or penalties.
Follow our WhatsApp Channel and X Account for real-time news updates.
Okay
Bungoma