Pay As You Earn (PAYE)

Pay as You Earn (PAYE) is a mandatory statutory tax deduction that comprises of a portion of an employees remuneration that is remitted to KRA on a monthly basis.

PAYE is calculated based on an employee's Gross Earnings. Our PAYE Tax Calculator tool calculates tax payable on taxable salaries in Kenya as per the KRA iTax Calculation guidelines. This resource is an ideal tool for salary planning and compliance validation.

Employers withhold this tax from an employee's pay and submit it to KRA on their employees behalf via KRA Online Portal. The employee's payroll information is compiled into a single zip file using a unique Microsoft Excel file called an iTax P10 file (Click Here to get the latest file). How to fill this out may be found in our iTax P10 how-to tutorial.

Take Note: Effective January 2022 insurance relief is now applicable to NHIF after gazettement of the The Finance Act No.8 of 2021
Effective January 2022 insurance relief is now applicable to NHIF after gazettement of the The Finance Act No.8 of 2021
Latest Finance Bill 2023
Find out more about the Latest Statutory Rates here.